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Home My WebLink About2025-01-28 - AGENDA REPORTS - FY 2023 24 CAFRO Agenda Item: 6 CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR CITY MANAGER APPROVAL: Lj DATE: January 28, 2025 SUBJECT: FISCAL YEAR 2023-24 ANNUAL COMPREHENSIVE FINANCIAL REPORT AND OTHER RELATED REPORTS DEPARTMENT: Administrative Services PRESENTER: Brittany Houston RECOMMENDED ACTION City Council approve the Annual Comprehensive Financial Report and other related reports for fiscal year ending June 30, 2024. BACKGROUND The City of Santa Clarita's (City) independent audit firm, The Pun Group, LLP, has completed the City's annual audit for fiscal year ending June 30, 2024. The Pun Group, LLP, conducted the audit in accordance with Generally Accepted Auditing Standards, whereby an audit plan was prepared and followed to obtain reasonable assurance the City's financial statements were free from material misstatements. The audit included a review, on a test basis, of documents supporting the amounts and disclosures in the financial statements. The audit also included assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. The Annual Comprehensive Financial Report (ACFR) reflects the City's strong financial condition with a healthy General Fund balance. Based on the audit performed, The Pun Group, LLP, issued an unmodified "clean" audit opinion letter. The opinion reflects the best level an organization can receive on its financial statements. The letter is identified as the "Independent Auditor's Report" in the City's ACFR for fiscal year ending June 30, 2024. In accordance with Generally Accepted Auditing Standards (AU-C 260), the Auditor's Communication with Those Charged with Governance, a Report to the Honorable Mayor and Members of the City Council, has been prepared by The Pun Group, LLP, to provide specific information related to the audit scope and performance. Page 1 Packet Pg. 79 O In addition, the following reports were prepared for the fiscal year ending June 30, 2024, by The Pun Group, LLP: • Appropriations Limit Calculation • City of Santa Clarita Air Quality Improvement Fund • Santa Clarita Open Space Preservation District • Single Audit Report • Transit Enterprise Fund of the City of Santa Clarita Copies of the reports were provided to the City Council under a separate memo. ALTERNATIVE ACTION No feasible alternative action has been identified by staff. FISCAL IMPACT There is no fiscal impact. ATTACHMENTS Annual Comprehensive Financial Report 06-30-2024 (available in City Clerk's Reading File) Report to Honorable Mayor and Members of the City Council (available in City Clerk's Reading File) Appropriations Limit Calculation 06-30-2024 (available in City Clerk's Reading File) Air Quality Improvement Fund 06-30-2024 (available in City Clerk's Reading File) Open Space Preservation District 06-30-2024 (available in City Clerk's Reading File) Single Audit Report 06-30-2024 (available in City Clerk's Reading File) Transit Enterprise Fund 06-30-2024 (available in City Clerk's Reading File) Page 2 Packet Pg. 80 SANTA OL r U ... .f� F 9 0 ti�FQ �5 DECEMB�� City of SANTA CLARITA 4 ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2024 of Santa Clarita, California City of Santa Clarita, California Annual Comprehensive Financial Report Year Ended June 30, 2024 Prepared by the Finance Division City of Santa Clarita Annual Comprehensive Financial Report For the Year Ended June 30, 2024 Table of Contents INTRODUCTORY SECTION (Unaudited Pate GFOA Certificate of Achievement for Excellence in Financial Reporting.................................................................. v Letterof Transmittal................................................................................................................................................... vii Elected Officials and Executive Management............................................................................................................ xv OrganizationChart ..................................................................................................................................................... xvi Map........................................................................................................................................................................... xvii FINANCIAL SECTION Independent Auditors' Report on the Audit of the Financial Statements............................................................. 1 Management's Discussion and Analysis (Required Supplementary Information) (Unaudited) ......................... 5 Basic Financial Statements: Government -Wide Financial Statements: Statementof Net Position.............................................................................................................................. 18 Statementof Activities................................................................................................................................... 20 Fund Financial Statements: Governmental Fund Financial Statements: BalanceSheet.......................................................................................................................................... 26 Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Position......................................................................... 28 Statement of Revenues, Expenditures, and Changes in Fund Balances .................................................. 30 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government -Wide Statement of Activities....................................................................................... 32 Proprietary Fund Financial Statements: Statementof Net Position........................................................................................................................ 35 Statement of Revenues, Expenses, and Changes in Net Position............................................................ 36 Statementof Cash Flows......................................................................................................................... 37 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position........................................................................................................ 41 Statement of Changes in Fiduciary Net Position..................................................................................... 42 Notes to the Basic Financial Statements........................................................................................................... 47 0 City of Santa Clarita Annual Comprehensive Financial Report For the Year Ended June 30, 2024 Table of Contents (Continued) Pate FINANCIAL SECTION (Continued) Required Supplementary Information (Unaudited): Budgetary Comparison Schedule: GeneralFund..................................................................................................................................................103 Bridge and Thoroughfare Special Revenue Fund..........................................................................................104 Impact Fees Special Revenue Fund...............................................................................................................105 Landscape Maintenance District #1 Special Revenue Fund..........................................................................106 BudgetaryInformation........................................................................................................................................107 Schedule of Changes in Net Pension Liability and Related Ratios: CAPERSMiscellaneous................................................................................................................................108 Schedule of Contributions — Pensions: CAPERSMiscellaneous................................................................................................................................110 Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios: Other Postemployment Benefits("OPEB")...................................................................................................112 Schedule of Contributions — Other Postemployment Benefits("OPEB").........................................................114 Schedule of Money Weighted Rate of Return — OPEB......................................................................................116 Supplementary Information: Nonmajor Governmental Funds: CombiningBalance Sheet..............................................................................................................................123 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances......................................134 Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual: BikewaySpecial Revenue Fund..............................................................................................................145 GasTax Special Revenue Fund...............................................................................................................146 Proposition A Special Revenue Fund......................................................................................................147 Special Assessment Special Revenue Fund.............................................................................................148 Street Lighting District Special Revenue Fund.......................................................................................149 Measure M Local Return Special Revenue Fund....................................................................................150 SB 1 Road Repair and Activity Special Revenue Fund...........................................................................151 Transportation Development Act (TDA) 8 Special Revenue Fund.........................................................152 Traffic Safety Special Revenue Fund......................................................................................................153 Community Development Block Grant Special Revenue Fund..............................................................154 Air Quality Management District (AQMD) Special Revenue Fund.......................................................155 Stormwater Special Revenue Fund..........................................................................................................156 Surface Transportation Program Special Revenue Fund.........................................................................157 In City of Santa Clarita Annual Comprehensive Financial Report For the Year Ended June 30, 2024 Table of Contents (Continued) Pate FINANCIAL SECTION (Continued) Supplementary Information (Continued): Nonmajor Governmental Funds (Continued): Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual (Continued): BJA Law Enforcement Special Revenue Fund..................................................................................... 158 Supplemental Law Grant Special Revenue Fund.................................................................................. 159 HOMESpecial Revenue Fund.............................................................................................................. 160 Library Facilities Fees Special Revenue Fund...................................................................................... 161 Public Education and Government Special Revenue Fund................................................................... 162 Proposition C Special Revenue Fund.................................................................................................... 163 Measure H Special Revenue Fund......................................................................................................... 164 Federal Grants Special Revenue Fund................................................................................................... 165 Measure R Special Revenue Fund......................................................................................................... 166 Measure R Highway Improvement Special Revenue Fund................................................................... 167 Measure M ATP Special Revenue Fund............................................................................................... 168 Measure A Safe Parks Special Revenue Fund....................................................................................... 169 Measure W Safe Clean Water Special Revenue Fund........................................................................... 170 Tourism Marketing District Special Revenue Fund.............................................................................. 171 Open Space Preservation District (OPSD) Special Revenue Fund ....................................................... 172 Miscellaneous Grants Special Revenue Fund....................................................................................... 173 Park Dedication Special Revenue Fund................................................................................................ 174 Housing Successor Agency Special Revenue Fund.............................................................................. 175 Tourism Marketing Bureau Special Revenue Fund............................................................................... 176 Areawide Special Revenue Fund........................................................................................................... 177 Cooper Street Parking Structure CFD 2020 Special Revenue Fund ..................................................... 178 Developer Fee Special Revenue Fund................................................................................................... 179 Vista Canyon (VC) Wastewater Standby District Special Revenue Fund ............................................ 180 Public Library Special Revenue Fund................................................................................................... 181 American Rescue Plan Special Revenue Fund...................................................................................... 182 Capital Projects Funds: Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual: General.................................................................................................................................................. 183 CivicArts Projects Fund....................................................................................................................... 184 Debt Service Funds: Schedule of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual: Public Financing Authority Debt Service Fund..................................................................................... 185 Internal Service Funds: Combining Statement of Net Position......................................................................................................... 189 Combining Statement of Revenues, Expenses and Changes in Net Position .............................................. 190 Combining Statement of Cash Flows........................................................................................................... 191 Custodial Fund: Combining Statement of Fiduciary Net Position......................................................................................... 194 Combining Statement of Changes in Fiduciary Net Position...................................................................... 196 City of Santa Clarita Annual Comprehensive Financial Report For the Year Ended June 30, 2024 Table of Contents (Continued) Pate STATISTICAL SECTION (Unaudited) Description of Statistical Section Contents.................................................................................................................201 Financial Trends: NetPosition by Component..................................................................................................................................202 Changesin Net Position....................................................................................................................................... 204 Fund Balances — Governmental Funds.................................................................................................................208 Changes in Fund Balances — Governmental Funds..............................................................................................210 Revenue Capacity: Assessed Valuation and Actual Values of Taxable Property...............................................................................212 Redevelopment Agency — Assessed Valuation and Actual Values of Taxable Property.....................................214 Assessed Values — Taxable Property....................................................................................................................216 Assessed Values — Use Category Summary......................................................................................................... 218 Direct and Overlapping Property Tax Rates — Last Ten Fiscal Years.................................................................. 219 Direct and Overlapping Property Tax Rates — One Year Detail of Rates Producing Revenue for City and Associated Redevelopment Agencies........................................................221 PrincipalProperty Taxpayers............................................................................................................................... 222 Property Tax Levies, Tax Collections and Delinquencies....................................................................................224 Top Property Owners Based on Net Values.........................................................................................................225 Project Area Assessment Appeals Summary and Tax Collection History...........................................................227 Charge Detail Report for CFD 2002-1 (Valencia Town Center)..........................................................................228 Debt Capacity: Ratios of Outstanding Debt by Type.................................................................................................................... 230 Ratios of General Bonded Debt Outstanding....................................................................................................... 232 Direct and Overlapping Tax and Assessment Debt..............................................................................................233 LegalDebt Margin Information........................................................................................................................... 234 PledgedRevenue Coverage.................................................................................................................................. 236 Demographic and Economic Information: Demographic and Economic Statistics.................................................................................................................237 Operating Information: PrincipalEmployers.............................................................................................................................................238 Full -Time and Part -Time City Employees by Function.......................................................................................239 OperatingIndicators by Function......................................................................................................................... 240 Capital Asset Statistics by Function..................................................................................................................... 242 lv Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Santa Clarita California For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2023 Executive Director/CEO This page intentionally left blank. vi City of SANTA CLARITA 23920 Valencia Boulevard • Santa Clarita, California 91355-2196 Phone: (661) 259-2489 • FAX: (661) 259-8125 www.santa-clarita.com December 27, 2024 Honorable Mayor, Mayor Pro Tem, City Councilmembers and Santa Clarita residents: The Annual Comprehensive Financial Report (ACFR) of the City of Santa Clarita (City) for fiscal year ended June 30, 2024, is hereby submitted in accordance with Chapter 2.12 of the City of Santa Clarita Municipal Code. This report provides the City Council and the public with an understanding of the financial condition of the City. This report consists of management's representations concerning the finances of the City of Santa Clarita. As such, management assumes full responsibility for the completeness and reliability of the information contained in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive framework of internal controls that are designed to protect the City's assets from loss, theft or misuse and to compile sufficient reliable information for the preparation of the City's financial statements. Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements are free from material misstatement. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and reported in a manner designed to present fairly the financial position and results of operations of the various funds of the City of Santa Clarita. State Law requires the City to prepare an annual financial report. This report fulfills that obligation. The Pun Group, LLP, an independent firm of certified public accountants, has issued an unmodified ("clean") opinion on the financial statements of the City of Santa Clarita for the year ended June 30, 2024. The independent auditor's report is located at the front of the financial section of this report. The ACFR has been prepared in conformity with Generally Accepted Accounting Principles (GAAP) and the financial reporting requirements prescribed by the Governmental Accounting Standards Board (GASB). These reporting requirements specify that management provide a narrative introduction, overview and analysis to accompany the financial statements in the form of a Management's Discussion and Analysis (MD&A). The MD&A, which immediately follows the independent auditor's report, complements this letter of transmittal and should be read in conjunction with it. Also, as a recipient of federal and state financial assistance, the City is required to have a "Single Audit" performed by our independent audit firm. The Single Audit was designed to UN Honorable Mayor, Mayor Pro Tem, City Council members and Santa Clarita residents meet the special needs of the federal grantor agencies. The standards governing the Single Audit engagements require that the independent auditor report on the fair presentation of the financial statements and the audited government's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City's separately issued Single Audit Report. CITY PROFILE The City of Santa Clarita was incorporated on December 15, 1987, as a General Law City and operates under a City Council/City Manager form of government. It is located between the Santa Susana and San Gabriel mountain ranges, approximately 35 miles northwest from the City of Los Angeles. It is comprised of the communities of Canyon Country, Newhall, Saugus and Valencia, encompassing approximately 73.5 square miles. With a population of approximately 231,000, the City is the third -largest in Los Angeles County and the 161h largest in the State of California. Santa Clarita offers an expansive parks and recreation network, with 38 beautiful park facilities, more than 13,000 acres of preserved open space and 150 miles of trails and paseos designed for commuting and recreational use, including walking, hiking, biking and skating. The City's unique blend of upscale sophistication with small-town charm and old -west heritage allows it to accommodate growth while continuing to provide an excellent quality of life for residents. The City of Santa Clarita's five City Councilmembers are elected to four-year overlapping terms, with elections held bi-annually. Beginning in 2024, the council elections transitioned to by -district elections. The position of Mayor is annually selected by the Councilmembers. The City Council is responsible for, among other things, passing ordinances, adopting the budget, setting policy and appointing committees. The City Council appoints the City Manager, who is responsible for implementing the policies of the Council, overseeing the day-to-day operations of City government and for appointing and managing the various Directors. The City Council also appoints the City Attorney. The City provides, either directly or under contract, a full range of municipal services, including public safety, construction, maintenance of streets and other infrastructure, public libraries, public works, parks, recreation, community development and cultural events. The City also provides services through the Santa Clarita Public Financing Authority (PFA), which is a blended component unit of the City of Santa Clarita. The financial activities of this entity are included in this report, as its operations are under the control of the City. The City operates on a fiscal year basis, which begins July 1, and ends June 30. The City's Municipal Code requires the City Manager to prepare a budget and present it to the City Council each year. The budget process begins in January of each year and is carried out under the direction of the City Manager in cooperation with the various City departments. The proposed operating and capital budget is submitted by the City Manager to City Council for adoption by June 30, to take effect at the beginning of the fiscal year on July 1. Budgetary control for the City is maintained through its accounting systems. Once Vii Honorable Mayor, Mayor Pro Tem, City Council members and Santa Clarita residents adopted, the budget may be amended throughout the year as necessary. Budgetary control is established at the category level within each fund. The budgetary control for the Capital Improvement Program is at the program level. LOCAL ECONOMY The City of Santa Clarita is one of Southern California's most desirable places to live and do business. City officials pride themselves on the organization's ability to balance the needs of locally -based businesses with those of the community members, resulting in an unmatched quality of life. The City of Santa Clarita was once again named as a finalist for the "Most Business - Friendly City in Los Angeles County" in 2024 by the Los Angeles County Economic Development Corporation, and continues to have a community -minded, business -driven approach to economic development. The City is committed to business -friendly practices that have resulted in a robust local economy. These practices have positioned Santa Clarita well for the future. Santa Clarita's economy remains strong, with many new businesses that have opened in the community this year. These include a new Tesla dealership, Garcia Bros Cafe, San Fernando Coffee Company, Persian Grill and Cafe, Wild Fork, The Coral Enclave, Welik Mexican Cuisine, Santa Cruz Brewery, Makenna Koffee Company, Mendocino Farms, Daiso, Beverly Hills Rejuvenation Center, Koneko Cafe, Hammer & Nails Grooming, The Skin Agency, The Kebab Shop, MooyahBurger, Philz Coffee and Dose of Aesthetics. Also, several businesses opened additional locations in Santa Clarita, including Trader Joe's, It's Boba Time, Aldi, Dollar Tree and Grocery Outlet. Businesses slated to open at a later date include Perspire Sauna, Farmer Boys, Yard House, Dog Haus and King of Crabs, as well as a second location for Sprouts. Specifically in Old Town Newhall, several new businesses that have opened include: The Break Room, Teagan's Enchanted Tea Room, Gold Coast Sushi & Ramen and Henry's Coffee. The Town Center Specific Plan, a comprehensive vision for the future of the Valencia Town Center, was adopted by the City Council and took effect on August 8. This plan lays the groundwork for a dynamic transformation of the area into a vibrant hub for shopping, dining, entertainment and events. As we move forward, the plan will guide growth and development, ensuring Valencia Town Center continues to evolve into a thriving destination that benefits both our residents and visitors. Proposals for new development within the project area are anticipated in early 2025. Industrial construction remains steady, with the completion of Needham Ranch this year and the beginning of construction of the Santa Clarita Commerce Center. Residential construction continues, with the Highlands at Tesoro and Skyline Ranch developments continuing to build homes and Bouquet Canyon Residential gearing up for construction in early 2025. ix Honorable Mayor, Mayor Pro Tem, City Council members and Santa Clarita residents Commercial vacancy rates in offices within Santa Clarita have risen compared to the third quarter of last year, with the office vacancy rate at 19.5 percent, compared to 15.1 percent in 2023. The retail vacancy rate is currently at 3.8 percent, compared to 3.1 percent in 2023. The slowdown of demand for industrial space, paired with new industrial space recently becoming available, has raised the vacancy rate to 6.6 percent, compared to 0.6 percent last year. In Fiscal Year 2023-24, the Film Office issued 366 permits, which led to 885 film days and $18,504,500 in estimated economic impact. Santa Clarita is home to approximately 60 sound stages, 10 movie ranches and a multitude of film -related businesses. Popular television shows like "Cesar Milan: Better Human, Better Dog," "CSI: Vegas," "Good Trouble," "NCIS" and "S.W.A.T." were based in Santa Clarita, while shows like "9-1-1," "Bosch Legacy," "Dr. Odyssey," "The Golden Bachelorette," "Love is Blind," "Platonic," "The Terminal List" and "The Old Man" regularly filmed on location within the City. Numerous feature films were shot at sound stages and at movie ranches in Santa Clarita in the last year, including "Lonely Planet," "MaXXXine," "Night Swim," "Sacramento" and "Wolfs." Tourism continues to be a significant part of the City of Santa Clarita's economy, contributing approximately $5.3 million to the General Fund from Transient Occupancy Tax in Fiscal Year 2023-24. The Tourism Marketing District (TMD), a collaborative assessment program and partnership between the City and local hotels, collected over $1 million in support of increased marketing, promotion and event attraction for Santa Clarita as a tourism destination. Tourism Marketing District dollars are a vital component of the area's continued attraction of events and visitors, translating to dollars spent in the community and at local businesses. The following events were among those held in Santa Clarita in the last fiscal year: multiple hockey tournaments including UCLA Hockey, Grace Baptist Shepherds' Conference, USA Flag Football Tournament, Coach Jay's Chess Tournament, Legends FC SCV Soccer Tournament, Boots in the Park, Santa Clarita Blue Heat Soccer, Western States Speed Skating Championships, Spartan Race and Statham Academy Summer Basketball Camps. Santa Clarita recognizes the important role education plays in the success of the community. The City is home to three premier educational institutions, including the California Institute of the Arts (CalArts), College of the Canyons and The Master's University. These colleges offer world -class instruction and programming to prepare students to become the next generation of business professionals and leaders. LONG-TERM FINANCIAL PLANNING Santa Clarita is one of California's model cities, boasting the essential elements needed for well-balanced living and total well-being. Santa Clarita remains one of the safest cities in California among cities with populations exceeding 150,000. Santa Clarita is home to a well-educated population, with nearly 72 percent of adults aged 25 and older having attained some college or higher, compared to Los Angeles County, which averages 59 percent. Honorable Mayor, Mayor Pro Tem, City Councilmembers and Santa Clarita residents The City of Santa Clarita has experienced steady growth since its incorporation in 1987. Even throughout the pandemic, City officials continue to work directly with the private and public sectors to attract new businesses to the Santa Clarita Valley, The City of Santa Clarita is focused on retaining existing companies and encouraging their growth within the City while working to attract new businesses, thereby creating new jobs for residents. Santa Clarita has set an aggressive goal of creating two jobs for every household, thereby providing an increased opportunity for residents to work close to home. The City provides necessary funding for essential services for City Council and community -identified priorities while taking steps to ensure the City remains in good financial health. Twice per year, the City prepares extended forecasts for the General Fund to determine the future impact of current actions. These forecasts indicate a stable General Fund over the next few years, primarily due to projected marginal increases in sales and property taxes. The City of Santa Clarita has practiced smart growth in prosperous financial times, and is well prepared for times when revenue projections do not include growth. The City maintains a General Fund balance sufficient to provide for various identified contingencies, as well as an established operating reserve. In addition, the General Fund contributes annually to the City's facilities fund, which provides for major maintenance and replacement of infrastructure and capital improvements. The City's Capital Improvement Program (CIP) is a component of the annual budget process that addresses the City's short - and long-term capital needs. Just as important, the CIP emphasizes a plan of action that effectively maintains the existing infrastructure to a sound physical standard, as well as providing new facilities to support current growth and complement new development. In April 2023, Standard & Poor's Global Ratings (S&P) affirmed the City's 'AAA' issuer credit rating (ICR). The City was able to demonstrate strength in economy and management areas, as well as strong budgetary flexibility and liquidity with an operating surplus. Standard & Poor's Global Ratings recognized the City's budgetary flexibility as among the strongest nationwide for cities of comparable size with an available fund balance. This resulted in affirming the City of Santa Clarita's 'AAA' ICR with a "stable" outlook. This ICR reflects S&P's forward -looking opinion of the City's overall creditworthiness and the capacity and willingness to meet financial obligations. MAJOR MILESTONES IN FISCAL YEAR 2023-2024 ❖ Completed the City's 381h park, Skyline Ranch Park, offering 10.5 acres, including a playground, pickleball/tennis courts, a basketball court and a baseball field. ❖ Opened the first permanent homeless shelters in Santa Clarita thanks to significant contributions from the City. Bridge to Home's shelter now houses more than 100 individuals and Family Promise's Resource Center has space for four families. X1 Honorable Mayor, Mayor Pro Tern, City Councilmembers and Santa Clarita residents ❖ Kicked off the Traffic and Pedestrian Safety Improvement Project which was awarded $1.5 million in federal funding to address traffic circulation and pedestrian improvements within our community. ❖ Launched the Animal Care Grant Program, a new initiative to provide direct financial assistance to nonprofit organizations that serve the City's animal population. ❖ Adopted a resolution to support the City of Santa Clarita being designated as a Clean California Community. ❖ Earned high marks in the 2024 Public Opinion Poll with 85 percent of participants rating the City favorably as a place to raise a family and 83 percent rating it positively as a place to live. These high marks reflect the City's ongoing commitment to maintaining a safe, family -friendly environment. ❖ Welcomed residents to the first Spanish -language social media pages for the City of Santa Clarita @CiudadDeSantaClarita. ❖ Led the groundbreaking for the future The Rink Sports Pavilion, which will feature a 12,000-square-foot multi -use rink, perfect for roller skating, basketball, volleyball and pickleball. AWARDS AND ACKNOWLEDGEMENTS The City of Santa Clarita continued to receive accolades over the last year. This year, Santa Clarita was named the 8`h Safest City in the United States by PropertyClub, the 6th Safest City in the State by WalletHub, the Bch Kindest City in the State by LuvLink, the 161h Best City for Hispanic Entrepreneurs in the United States by WalletHub and the 6th Best City for Women in the United States by WalletHub. Santa Clarita was once again named a finalist for the Most Business -Friendly City by the Los Angeles Economic Development Corporation. This last year marked the 33`d consecutive year that Santa Clarita was designated as a Tree City USA by the National Arbor Day Foundation. This year, the City was also recognized with five California Association of Public Information Officials and five City -County and Marketing Association awards. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Santa Clarita for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2023. This was the 351h consecutive year the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement for Excellence in Financial Reporting, a government unit must publish an easily readable and efficiently organized Annual Comprehensive Financial Report. This report must satisfy GAAP and applicable legal requirements. A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. We believe our current annual comprehensive financial report continues to meet the requirements of the GFOA Xii Honorable Mayor, Mayor Pro Tem, City Councilmembers and Santa Clarita residents Certificate of Achievement Program, and we are submitting it to GFOA to determine its eligibility for another certificate. The City of Santa Clarita has received an Investment Policy Certificate of Excellence Award from the Association of Public Treasurers of the United States and Canada for its Fiscal Year 2024-25 Investment Policy. This year marks the 301h consecutive year that the City has received the nationally recognized Certificate of Excellence Award from the Association of Public Treasurers of the United States and Canada for its success in developing a comprehensive written investment policy. In order to receive certification, investment policies must be carefully reviewed by the association's Investment Policy Certification Committee. For a policy to receive certification, it must be approved by all reviewers on 18 areas spelled out in the Model Investment Policy. This policy includes elements the Association of Public Treasurers of the United States and Canada deems essential to a written investment policy such as policy, scope, the delegation of authority, ethics and conflicts of interest. In addition, the City was awarded the Annual Achievement of Excellence in Procurement (AEP) from the National Procurement Institute. This prestigious honor was awarded in recognition of the City's commitment to purchasing innovation and leadership. This is the 13`h year that the City has received this award in acknowledgment of Santa Clarita's purchasing policies and practices. The AEP A ward is earned by public and nonprofit organizations that obtain a high application score based on standardized criteria. The City of Santa Clarita's procurement ethics standards, eProcurement practices and internal procurement automation received high honors and recognition among judges. This report is a joint effort by many people from many different areas of responsibility. The preparation of this report could not have been accomplished without the hard work and team effort of the staff of the Finance division, in particular, Finance Manager, Brittany Houston; Finance Administrator, Mary Ann Ruprecht; Payroll Administrator, Jan Downey; Sr. Financial Analyst, Alicia Ng; Financial Analyst, Fabiola Gutierrez; Financial Analyst Susan Yamaguchi; Financial Analyst, Purevsuren Wrinkle; and Interim Financial Analyst Georgianna Nieto. I want to express my appreciation to all members of the division who assisted and contributed to its preparation. I would also like to thank the Mayor; Mayor Pro Tem; Councilmembers; City Manager, Ken Striplin; Assistant City Manager, Frank Oviedo; Director of Neighborhood Services, Jerrid McKenna; Director of Public Works, Mike Hennawy; Director of Recreation and Community Services, Janine Prado; Director of Economic Development, Tom Cole; Director of Community Development, Jason Crawford; and Director of Human Resources and Library Services, Kristi Hobrecker, for their continuing efforts in administering the financial operations of the City conservatively and responsibly. Xii Honorable Mayor, Mayor Pro Tem, City Councilmembers and Santa Clarita residents Sincerely, ��h(�tiM + Carmen Magana Director of Administrative Services/City Treasurer CM:BH:jb S.\FIN\CAFR\ACFR 24\MD&A, Transmittal Letter\Transmittal Letter FY 2023-24 docx Xlv OFFICIALS OF THE CITY OF SANTA CLARITA As of June 30, 2024 City Council Cameron Smyth MAYOR Bill Miranda MAYOR PRO TEM Laurene Weste COUNCILMEMBER Marsha McLean COUNCILMEMBER Jason Gibbs COUNCILMEMBER City Officials Ken Striplin CITY MANAGER Frank Oviedo ASSISTANT CITY MANAGER Joseph Montes CITY ATTORNEY DIRECTOR OF ADMINISTRATIVE Carmen Magana SERVICES DIRECTOR OF ECONOMIC Tom Cole DEVELOPMENT DIRECTOR OF NEIGHBORHOOD Jerrid McKenna SERVICES DIRECTOR OF PUBLIC WORKS/CITY Mike Hennawy ENGINEER DIRECTOR OF RECREATION AND Janine Prado COMMUNITY SERVICES DIRECTOR OF COMMUNITY Jason Crawford DEVELOPMENT DIRECTOR OF HUMAN RESOURCES AND Kristi Hobrecker LIBRARY SERVICES Carrie Lujan COMMUNICATIONS DIVISION MANAGER/PIO Xv Finance Information Services Special Districts ORGANIZATION CHART As of June 30, 2024 Santa Clarita Residents City Council City Manager Community City Manager's Economic Development Office Development Community Preservation Communications Economic Development Building and Safety Intergovemmental Relations Arts and Events Planning Public Safety Contract Transit Human Resources and Neighborhood Public Library Services Services Works Human Resources Environmental Services Capital Improvement Proerau Library Services Parks Engineering Services Facilities Maintenance General Services Parks Planning and Open Space Traffic Recreation and Community Services NA vpl(E11HUGHO I `L 1 DEL VALLE PARK — J I, CASTAIC SPORTS 1 1— --� COMPLEX — J 1 1 TESf R07 iT'pk O wY—tea: L �i ADOBE�PARK_� h e — J TERRYMILLER COP MEMORIAL PARK CANTON RD ' •WEST+CREEK 7_ 'PQ % V HASLEY CANYON i FA` CHES BROU �\ PARK `\ ` MW SUMMERHILLPARK ,oRPORATE YARD VALENCINHERITAGE PARK I*.0- MARKET PLACI SIX FLAGS "'Ep' NMAGjC,4fo(j/V?. 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J CANYON I r R`O D Z PARK I K 1 S LAIRD r 2� a 1 o 'BEGONIAS LANE PARK w1 Z O9 Q N 1 CENTRAL PARK �Q GOLDEN OW NYn iALLEVD�' TODD LONGSH=RE PAIORK CJ OAK �O SPRING CANYON p /—I\ PARK Y HALL A VALENCIACENTRAL ILENCIA VALLEY A jM71TN PARK 0 PARK Dom, CIRCLE 1 ALMENDRA L RANCH PARK rD VALENCIA COURSE MASTERS COLLEGE OMMUNITY CEf 1TER L NORTH OAKS PARK DISCOVERY PART( FRIENDLY VALLEY GOLF COU9 THE CASCADES THE CASCADES GOLF CLUB STETS /y CANYON COUNTRY PARK I VISTA EDA_D'CANYON'RD CANYON PARK 1 ROBINSON RANCH 1 COUNTRY CLUB 1 RD FAIR OAKS 1 PARK ; 1 VpST.171 o z 1 1 z I L— k-ACERITA,CANYON/1IIRD PLACERITA1 —L CANYON 1 1 STATE PARK 1 l J ' rI I 1 ANGELES 1— NATIONAL FOREST This page intentionally left blank. THE PUN GROUP ACCOUNTANTS & ADVISORS INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and Members of the City Council of the City of Santa Clarita Santa Clarita, California Report on the Audit of the Financial Statements Opinions 200 E. Sandpointe Avenue, Suite 600 Santa Ana, California92707 www.pungroup.cpa (M We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Santa Clarita, California (the "City"), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America ("GAAS"), and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States ( "Government Auditing Standards"). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matters Change in Accounting Principle As discussed in Notes 1 and 19 to the financial statements, the City adopted new accounting principal, GASB Statement No. 100, Accounting Changes and Error Corrections an Amendment of GASB Statement No. 62 in 2024 and resulted in restatement of beginning fund balances. Our opinions are not modified with respect to this matter. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor and Members of the City Council of the City of Santa Clarita Santa Clarita, California Page 2 In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors' Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: • exercise professional judgment and maintain professional skepticism throughout the audit. • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, the Budgetary Comparison Schedules, the Schedule of Changes in Net Pension Liability and Related Ratios, the Schedules of Contributions — Pensions, the Schedules of Changes in Net Other Postemployment Benefits Liability and Related Ratios, and the Schedules of Contributions — Other Postemployment Benefits be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the Required Supplementary Information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. To the Honorable Mayor and Members of the City Council of the City of Santa Clarita Santa Clarita, California Page 3 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The accompanying Combining and Individual Fund Financial Statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the Combining and Individual Fund Financial Statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the Introductory and Statistical Sections but does not include the basic financial statements and our auditors' report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 27, 2024, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. [r� Santa Ana, California December 27, 2024 This page intentionally left blank. MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED) Fiscal Year Ended June 30, 2024 This discussion and analysis of the City of Santa Clarita's (the City) financial performance provides an overview of the financial activities of the City for the fiscal year ended June 30, 2024. Our analysis includes information regarding the City's overall financial position and results of operations to assist users in evaluating the City's financial position, a discussion of significant changes that occurred in funds, and information regarding significant budget variances. In addition, it describes the activities during the year for capital assets and long-term debt. We end our discussion and analysis with a description of currently known facts, decisions and conditions that are expected to have a significant effect on the financial position or results of operations. Please read it in conjunction with the accompanying transmittal letter, the basic financial statements and the accompanying notes to those financial statements. FINANCIAL HIGHLIGHTS • The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $1.7 billion. Of this amount, $238 million represents unrestricted net position that may be used to meet the City's ongoing obligations to citizens and creditors. The City's deferred outflows of resources total $36.7 million and deferred inflows of resources total $25.3 million. • The City's total deferred outflows of resources decreased by $4.0 million. The deferred inflows of resources decreased by $2.2 million. The changes in deferred outflow and inflows were related primarily to Other Post -Employment Benefits (OPEB) and Pensions (Table 1). • The City's total net position increased by $81.7 million. Net position of the business -type activities decreased by $4.6 million, and the net position of the governmental activities increased by $86.3 million (Table 1 & 2). • The net capital assets of the City's governmental activities increased by $38.5 million, or 3.2% over last fiscal year. The increase was in part due to increases of $22.9 million in site improvements and $24.6 million in building and improvements. These increases are attributed to: 1) the completion of the Central Park Buildout and the Vista Canyon Ranch Metrolink Station; 2) the City's acceptance of the Vista Canyon Water Factory from the Vista Canyon developer, fulfilling the development's conditions of approval; and 3) an adjustment for the County's contribution for the Sheriff Station project. See Note 9 to the financial statements for additional information. • As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $468 million. This represents an increase of $47 million as compared to the prior year. • Within governmental funds, the General Fund reported a fund balance of $282 million, an increase of $15 million over the prior year. This increase is primarily attributed to investment income being $9.6 million higher and taxes being $3.4 million higher in fiscal year 2023-2024. USING THIS ANNUAL REPORT The financial statements presented herein include all of the activities of the City and its component unit using the integrated approach as prescribed by Governmental Accounting Standards Board (GASB) Statement No. 34. The three components of the basic financial statements are as follows: 1) Government -Wide Financial Statements The Government -Wide Financial Statements present the financial picture of the City from the economic resources measurement focus using the accrual basis of accounting in a manner similar to a private -sector business. These statements include all assets and deferred outflows of resources of the City (including infrastructure) as well as all liabilities and deferred inflows of resources (including long-term debt). USING THIS ANNUAL REPORT (CONTINUED) 2) Fund Financial Statements The Fund Financial Statements include statements for each of the three categories of activities: governmental, proprietary and fiduciary. For governmental activities, these fund statements tell how these services were financed in the short term, as well as what remains for future spending. Fund financial statements also report the City's operations in more detail than the government -wide statements by providing information about the City's most significant funds and other funds. 3) Notes to the Basic Financial Statements The notes provide additional information necessary to enable the user to fully understand the various financial statements. In addition to the basic financial statements and notes, this report contains other supplementary information. REPORTING THE CITY AS A WHOLE — GOVERNMENT -WIDE FINANCIAL STATEMENTS The Statement of Net Position and the Statement of Activities One of the most important questions asked about the City's finances is, "Is the City as a whole better or worse off as a result of the year's activities?" The Statement of Net Position and the Statement of Activities report information about the City as a whole, and its activities, in a way to answer this question. These statements include all assets and liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most private -sector companies. All of the current year's revenues and expenses are taken into account, regardless of when cash is received or paid. The Statement of Net Position reports all of the City's assets and deferred outflows of resources, and liabilities and deferred inflows of resources, with the difference between the two reported as net position. Net position is one way to measure the City's financial health or financial position. Over time, increases or decreases in the City's net position is an indication of whether its financial health is improving or deteriorating. Other things to consider are non -financial factors, such as changes in the economy due to external factors that would cause an increase or decrease in consumer spending. The Statement of Activities presents information relating to how the City's net position changed during the fiscal year. All activities resulting in changes in net position are reported when earned or incurred, regardless of the receipt or disbursement of the related transaction's cash flows. Some of the revenues and expenses reported in this statement will result in future fiscal period cash flows, such as the receipt of uncollected taxes and the payment of interest expense or compensated absences. In the Statement of Net Position and the Statement of Activities, we separate the City's activities as follows: Governmental Activities — Most of the City's basic services are reported in this category, including general administration (City Manager, City Clerk, Finance, etc.), public safety, public works, recreation, neighborhood services, community services, and community development (planning). These activities are distinguished due to the use of property taxes, sales tax, transient occupancy tax, user fees, interest income, franchise fees, state and federal grants, contributions from other agencies, and other revenues to finance these activities. Business -Type Activities — City functions that are intended to be primarily self-supporting through the imposition of user fees and charges are reported in the business -type activity category. Business -type activities for the City consist of transit activities related to the operation of the City's local public transportation system. REPORTING THE CITY AS A WHOLE — GOVERNMENT -WIDE FINANCIAL STATEMENTS (CONTINUED) Component Unit Activities — The City of Santa Clarita is the primary government unit to one legally separate entity. The financial activity and data of the Santa Clarita Public Financing Authority has been accounted for within the funds of the City, and therefore, separate component unit financial information is not presented within the financial statements. REPORTING THE CITY'S MOST SIGNIFICANT FUNDS — FUND FINANCIAL STATEMENTS A fund is a grouping of related accounts used to account for and accumulate financial information related to a specific activity or objective. Some funds are required to be established by State law and bond covenants; however, management established many other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants and other resources. The fund financial statements provide detailed information about the most significant funds and other funds — not the City as a whole. The City's three types of funds are governmental, proprietary and fiduciary. Governmental Funds — Most of the City's basic services are reported in governmental funds. Governmental fund financial statements focus on how money flows in and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called "modified accrual" accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City's programs. Because the focus of the governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for the governmental funds with similar information presented for the governmental activities in the government - wide financial statements. Reconciliation of the Fund Financial Statements to the Government -Wide Financial Statements is provided to explain the differences created by this integrated approach. The City reports governmental fund financial information within 48 governmental funds. The General Fund, Bridge and Thoroughfare Fund, Impact Fee Fund, and Landscape Maintenance District #1 Fund are presented separately as major funds in the governmental fund balance sheet and in the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances. Financial data for the remaining 44 governmental funds are combined into a single, aggregated presentation. Supporting financial information on each of the other governmental funds is also provided within the report. Proprietary Funds — The City maintains two different types of proprietary funds. When the City charges customers for the services it provides, these services are generally reported in a type of proprietary fund known as an enterprise fund. Enterprise funds are used to report the same functions presented as business - type activities in the government -wide financial statements, but the proprietary fund statements provide more detail and additional information, such as a statement of cash flows. The City uses the Transit Enterprise Fund to account for the activities related to transit operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses three internal service funds to account for costs related to self- insurance, computer replacement and vehicle -equipment replacement. Proprietary funds are reported in the same way all activities are reported in the Statement of Net Position and the Statement of Activities. The proprietary fund financial statements provide separate information for the Transit Enterprise Fund, which is considered to be a major fund of the City. All of the internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements in the supplementary information section of this report. THE CITY AS TRUSTEE — FIDUCIARY FUND STATEMENTS Reporting the City's Fiduciary Responsibilities The City is the trustee and custodian, or fiduciary, for certain funds held for the benefit of other parties outside of the City. The City's fiduciary activities are reported in separate Statements of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position. These activities were excluded from the City's other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. NOTES TO THE BASIC FINANCIAL STATEMENTS The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. OTHER INFORMATION In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the comparison of budget and actual results for the major governmental funds, other post -employment benefits money weighted rate of return, schedule of changes in the City's net pension liability, OPEB and related ratios, and a schedule of the City's pension and OPEB contributions. This section is located after the Notes to Financial Statements. The combining statements referred to earlier in connection with the other governmental funds, internal service funds and fiduciary funds are presented immediately following the required supplementary information described in the previous paragraph in the supplementary information section. THE CITY AS A WHOLE The analysis below focuses on the net position (Table 1) and changes in net position (Table 2) of the City's governmental and business -type activities. The City's net position may be analyzed and used as an indicator of the City's overall financial condition. The City's combined net position increased by $81.7 million, increasing from $1.58 billion to $1.66 billion. THE CITY AS A WHOLE (CONTINUED) TABLE 1 CITY OF SANTA CLARITA'S NET POSITION Governrrental Activities Business -type Activities Total 2024 2023 2024 2023 2024 2023 ASSETS: Current and Other Assets $ 511,621,390 $ 461,479,196 $ 23,995,234 $ 15,484,464 $ 535,616,624 $ 476,963,660 Capital assets, net 1,236,492,893 1,197,956,002 84,534,345 96,692,691 1,321,027,238 1,294,648,693 Noncurrent Assets 41,106,181 50,239,381 183,117 123,020 41,289,298 50,362,401 TOTAL A SSETS 1,789,220,464 1,709,674,579 108, 712,696 112, 300,175 1, 897, 933,160 1, 821, 974, 754 DEFERRED OUTFLOWS OF RESOURCES: 35,503,061 39,409,551 1,192,123 1,291,206 36,695,184 40,700,757 LIABILTIES: Noncurrent Liabilities 189,216,881 187,488,294 1,515,204 1,445,888 190,732,085 188,934,182 Other Liabilties 53,401,988 63,740,323 4,427,438 3,527,922 57,829,426 67,268,245 TOTAL LIABILITIES 242,618,869 251,228,617 5,942,642 4,973,810 248,561,511 256,202,427 DEFERRED INFLOWS OF RESOURCES: 24,818,717 26,876,098 499,089 592,840 25,317,806 27,468,938 NET POSTION: Net investrrent in capital assets 1,154,546,653 1,124,934,271 84,534,345 96,692,691 1,239,080,998 1,221,626,962 Restricted 183,484,669 158,032,140 - - 183,484,669 158,032,140 Unrestricted 219,254,617 188,013,004 18,928,743 11,332,040 238,183,360 199,345,044 TOTAL NET POSITION $1,557,285,939 $1,470,979,415 $ 103,463,088 $108,024,731 $1,660,749,027 $1,579,004,146 *Net Position, as restated The City's net position is made up of three components: Net Investment in Capital Assets, Restricted Net Position and Unrestricted Net Position. As of June 30, 2024, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $1.7 billion. The largest component of the City's net position, 74.6%, is represented by its $1.24 billion net investment in capital assets (e.g., infrastructure, land, buildings and improvements, equipment, and construction in progress, less accumulated depreciation and any related outstanding debt used to acquire the capital assets). These capital assets are used to provide services to the citizens, and therefore are not available to finance future operations. In addition, resources necessary to repay the related debt must be provided by sources other than the capital assets, as the assets themselves cannot be used to satisfy these liabilities. An additional portion of the City's net position, 11.0% represents resources subject to external restrictions on how they may be used. The remaining 14.4% of unrestricted net position, $238.2 million, may be used to meet the City's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in both categories of governmental and business -type net position consistent with prior years. Net position for governmental activities increased by $86.3 million over the prior year. The unrestricted net position of the business -type activities increased by $7.6 million. 9 THE CITY AS A WHOLE (CONTINUED) Governmental Activities Revenues from governmental activities increased by $13.6 million. The cost of all governmental activities this year was $203.7 million, an increase of 6.4% over the past year. As shown in the Statement of Activities, the governmental activities expenses were ultimately financed in part by the taxpayers, as $99.8 million in revenues were generated by service revenues received from the performance of these activities; another $31.4 million was received from government agencies and other organizations that subsidized certain programs with operating grants and contributions; and another $27.1 million in revenues was generated from capital grants and contributions. The $8.8 million decrease in capital grants and contributions is attributed to the prior year recordation of the Tesoro del Valle annexation. Overall, the City's governmental program and general revenues amounted to $289.8 million, which funded the expenses and resulted in a $86 million increase in net position. The increase of $3.2 million in Property Taxes was due to higher assessed property values. The increase of $10.3 million in Other is attributed to a $9.6 million increase in investment income compared to the prior year. TABLE 2 CITY OF SANTA CLARITA'S CHANGES IN NET POSITION Governmental Activities Business -type Activities Total 2024 2023 2024 2023 2024 2023 Program Revenues: Charges for services $ 99,838,340 $ 87,306,870 $ 6,161,116 $ 6,499,657 $ 105,999,456 $ 93,806,527 Operating grants and contributions 31,377,313 35,092,994 27,714,574 15,173,066 59,091,887 50,266,060 Capital grants and contributions 27,088,019 35,865,511 3,509,025 8,107,402 30,597,044 43,972,913 General Revenues: Taxes: Property taxes 48,363,857 45,187,496 48,363,857 45,187,496 Other taxes 66,019,485 66,013,353 66,019,485 66,013,353 Other 17,086,025 6,740,803 418,986 851,790 17,505,011 7,592,593 Total Revenues 289,773,039 276,207,027 37,803,701 30,631,915 327,576,740 306,838,942 General government 42,903,612 49,428,154 - - 42,903,612 49,428,154 Public safety 38,352,436 33,228,916 - - 38,352,436 33,228,916 Recreation and community services 21,576,455 20,430,503 - - 21,576,455 20,430,503 Public works 16,966,219 18,720,585 - - 16,966,219 18,720,585 Corrrrunity development 20,881,513 19,948,687 - - 20,881,513 19,948,687 Neighborhood services 35,112,719 23,816,831 - - 35,112,719 23,816,831 Unallocated infrastructure depreciation 22,660,450 22,077,333 - - 22,660,450 22,077,333 Interest and fiscal charges 5,267,945 3,912,327 - - 5,267,945 3,912,327 Transit - - 42,110,510 35,506,571 42,110,510 35,506,571 Total Expenses 203,721,349 191,563,336 42,110,510 35,506,571 245,831,859 227,069,907 Increase/Decrease in Net Postion Before Transfers 86,051,690 84,643,691 (4,306,809) (4,874,656) 81,744,881 79,769,035 Transfers 254,834 (8,384,754) (254,834) 8,384,754 - - Changes in Net Position 86,306,524 76,258,937 (4,561,643) 3,510,098 81,744,881 79,769,035 Net Position —Beginning of Year 1,470,979,415 1,394,720,478 108,024,731 104,514,633 1,579,004,146 1,499,235,111 Net Position —End of Year $ 1,557,285,939 $ 1,470,979,415 $ 103,463,088 $ 108,024,731 $ 1,660,749,027 $ 1,579,004,146 Business -Type Activities Business -type activities decreased the City's net position by $4.6 million for the current year. Business -type activities revenues increased by $7.2 million during the year for a total of $37.8 million in revenues, excluding transfers in from governmental activities. The increase was mainly due to an increase in Operating grants and contributions which increased by $12.5 million, primarily as a result of utilizing federal American Rescue Plan Act (ARPA) ($9.8 million) and Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) ($2.7 million) funds for transit operations. Related transit activity expenses remained consistent from prior year. The increase in transit expenses was largely due to Vista Canyon Metrolink Station rail related work that was turned over to Southern California Regional Rail Authority (SCRRA) at the completion of the project. 10 THE CITY'S FUNDS The governmental funds reported a combined fund balance at the end of the current fiscal year of $468 million, an increase of $47 million over the prior year. Approximately $198 million is restricted and already reserved for specific restricted purposes. The total governmental fund balance includes the general fund balance of $282 million. The General Fund is the chief operating fund of the City. The unassigned fund balance of $68 million is available for spending at the City's discretion. More detailed information about the City's classification of fund balances are presented in Note 18 to the financial statements. Other major fund balance changes are noted below: • In the current year, the American Rescue Plan Fund, Developer Fee Fund, and Public Library Fund are no longer reported as a major fund due to decreases in activities. The new Impact Fee Fund is classified as a major fund. See Note 19 for more information. • The Bridge and Thoroughfare Fund has realized an increase of $6.4 million in its fund balance from prior year. The increase was due to higher interest earnings as a result of higher interest rates and a $5.2 million increase in Developer Fees. • The Landscape Maintenance District's fund balance increased by $2.4 million from the prior year mainly due consumer price index (CPI) increases to special assessments and an increase of $804,388 in investment income when compared to prior year. • The Impact Fee Fund is a new governmental fund established in fiscal year 2023-2024 to account for impact fees received from new development projects and are required to be used only for those purposes for which the impact fees were collected. In the current year, the Impact Fee Fund reports an ending fund balance of $6 million. See Note 19 for more information. In addition to the major funds, the fund balances for the other governmental funds experienced an aggregate increase of $23 million as a result of the Public Library Fund being reclassified to a non -major fund, increasing taxes revenue by $10.2 million; and American Rescue Plan being reclassified to non -major fund increasing intergovernmental revenue by $6.3 million. The City's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. The total net position for the Transit Enterprise Fund decreased over the prior year by $4.6 million. The decrease was mainly due to a $7.5 million increase in transit expenses for Vista Canyon Metrolink Station rail related work that was turned over to Southern California Regional Rail Authority (SCRRA) at the completion of the project. The unrestricted portion of the business -type activities net position increased by $7.6 million from the prior year. The Internal Service Funds net position increased by $1.4 million or 11.8%. The ending fund balance for Internal Service Funds is $13.4 million, of which $11.9 million is unrestricted. General Fund Budgetary Highlights Comparison of the fiscal year 2023-2024 original (adopted) general fund budgeted expenditures and transfers of $139.8 million to the final budgeted expenditures of $191.8 million results in a net increase of $52 million. Included in this net increase is $35,562,121 committed purchase orders and contracts from the prior June 30 balance, as well as $5,343,695 of prior fiscal year operating and capital improvement projects approved for carryover into fiscal year 2023-2024. IM THE CITY'S FUNDS (CONTINUED) Original Budget Continued Encumbrances Beg. Balance - Supplemental Final Budget + Appropriations + = Changes = $139,832,905 + $5,343,695 + $35,562,121 = $180,738,721 + $ 11,065,272 = $191,803,993 Comparing the beginning budget balance of $180.8 million with the final budget of $191.8 million indicates the General Fund had a supplemental budgetary increase of $11 million during the fiscal year. The budgetary increase was primarily due funding appropriations for the Central Park Buildout and Energy Efficiency project. Included in the supplemental appropriations are the results of this year's budget review. During the mid -year budget review, budgeted general fund revenue had an increase of $1.5 million, inclusive of transfers in. Included in this figure are increases of $1.8 million in development revenues attributed to continued residential activities and large projects, $400,000 in property tax revenue due to higher assessed valuations, $844,000 in franchise fees, transient occupancy tax for $200,000 due to steady occupancy/room rates and the addition of the new Hampton Inn hotel, facility rentals for $86,659, and $10,386 transfer in from the developer fee fund for fire admin fees. It also included decreases of $1.6 million in sales tax revenue due to slower than anticipated growth, $278,300 in film permits and fees as a result of the writers' and actors' strikes, and $125,000 in animal licenses. At year-end, the City's actual general fund revenues, excluding transfers in, were $12.4 million more than the final budgetary estimates. Actual general fund expenditures, excluding transfers out, were less than the final budgetary estimates by $41.6 million, which is due to operational savings and capital projects carried forward to the next fiscal year. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets The City had $1.3 billion (net of accumulated depreciation) invested in a broad range of capital assets. This investment in capital assets includes land, buildings and related improvements, vehicles and equipment, and infrastructure, such as streets, bridges, traffic signals, medians, sidewalks, trails, sewers, curbs and gutters, drainage systems and intangible asset, right of use (see Table 3). TABLE 3 CITY OF SANTA CLARITA'S CAPITAL ASSETS (net of depreciation) Governmental Activities Business Type Activities Total 2024 2023 2024 2023 2024 2023 Land $ 264,016,645 $ 260,562,680 $15,087,880 $ 15787,880 $ 279,104,525 $ 275,650,560 Construction in progress 53,039,073 55,464,586 233,090 15,933,925 53,272,163 71,398,511 Infrastructure, net 636,322,627 645,663,216 - - 636,322,627 645,663,216 Depreciable site improvements, net 74,826,418 51,899,472 13,987,103 6,268,360 88,813,521 58,167,832 Depreciable building and improvements, net 200,529,101 175,904,560 28,214,434 29,252,614 228,743,535 205,157,174 Depreciable equipment, net 4,952,079 5,026,964 27, 011, 838 30,149, 912 31, 963, 917 35,176, 876 Intangible asset, net 2,806,950 3,434,524 - - 2,806,950 3,434,524 TOTALS $1,236,492,893 $ 1,197,956,002 $84,534,345 $ 96,692,691 $1,321,027,238 $1,294,648,693 12 CAPITAL ASSETS AND DEBT ADMINISTRATION (CONTINUED) Major capital asset events during the year included: • Infrastructure had a net decrease totaling $9.3 million as there were no major additions to infrastructure and the annual depreciation was higher than current year additions. • Construction in progress had a net decrease totaling $18 million due to the completion of the Central Park Buildout and the Vista Canyon Ranch Metrolink Station projects. • Depreciable site improvements had a net increase totaling $30.6 million as a result of the completion of the Central Park Buildout ($13.8 million),Vista Canyon Ranch Metrolink Station ($11.6 million), and Aquatic Center Pool Deck Replacement ($3.4 million), respectively. • Depreciable building and improvements had a net increase of $23.6 million as a result of the City accepting the Vista Canyon Water Factory from the Vista Canyon developer, fulfilling the development's conditions of approval, and an adjustment for the County's contribution for the Sheriff Station project. Additional information on the City of Santa Clarita's capital assets can be located in Note 9 to the financial statements. Debt Administration At year-end, the City's total debt amounted to $107 million in bonds, financed purchase notes, lease payable, subscription payable, claims payable and compensated absences as shown in Table 4. A summary of debt activity for the year follows. TABLE 4 CITY OF SANTA CLARITA'S OUTSTANDING DEBT Governmental Activities Business -type Activities Total 2024 2023 2024 2023 2024 2023 Revenue and Taxable Revenue Bonds $ 13,453,845 $ 13,799,814 $ $ $ 13,453,845 $ 13,799,814 Lease Revenue Bonds 76,138,324 78,753,621 76,138,324 78,753,621 Financed Purchase Notes Payable 64,218 97,376 64,218 97,376 Lease Liabilities 369,641 544,549 369,641 544,549 Subscription Liabilities 2,393,602 2,843,206 2,393,602 2,843,206 Compensated Absences 5,017,858 4,718,161 118,319 136,656 5,136,177 4,854,817 Claims Payable 9,577,306 7,440,596 - - 9,577,306 7,440,596 TOTAL $ 107,014,794 $ 108,197,323 $ 118,319 $136,656 $107,133,113 $108,333,979 The City's governmental activities had $107 million in debt at year-end. Governmental activities long-term debt decreased overall by $1.2 million. No new debt related to business -type activities was issued or refinanced during the current fiscal year. During the fiscal year ended June 30, 2024, the City was able to meet its current year debt obligation in a timely manner. State statutes limit the amount of general obligation debt a governmental entity may issue to 15% of its adjusted assessed valuation. The debt limitation for the City as of June 30, 2024 was $1,673,839,364. The calculation of the debt limitation is included in the statistical section. Additional information on the City of Santa Clarita's debt can be located in Note 11 to the financial statements. 13 ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS Our long history of conservative and strategic budget practices has allowed the City to maintain a balanced budget every year. Since the Great Recession, our organization has understood that there will continue to be economic peaks and valleys, and we need to be prepared and positioned for times when the economy is weak. • General Fund sales tax revenue continues to be one of the largest revenue source to operate general governmental functions, accounting for 32% or $47.7 million as projected in the 2024-2025 mid -year budget. • Property tax revenues account for 33% of the General Fund budget or $49.6 million in 2024-2025. The County Assessor's office makes changes to the City's property tax roll daily to reflect transfers in ownership, new construction, assessment appeals, parcel splits and other dynamic changes. Total 2024-2025 mid -year General Fund expenditures are projected to be $148.3 million, resulting in a balanced budget, an operating surplus of $378,831, and a 20% operating reserve of $25.8 million. The City's adopted 2024-2025 operating and capital budget for all funds was $342 million, net of transfers. The City remains dedicated to service excellence, teamwork and creativity. City staff continues to do more with less, find creative ways to maintain services revered by our community, and provide award -winning programs. The 2024-2025 budget remains to be a reflection of the City's commitment to the residents of Santa Clarita. This is consistent with the City's long tradition of ensuring that programming for Santa Clarita's youth and children is a priority to help promote growth and curb teen crimes. A copy of the adopted City's 2024-2025 budget can be obtained by visiting the web at https://santaclarita..qov/city-budget/. This financial report is designed to provide a general overview of the City's finances for all those with interest in the government's finances. Questions concerning any of the information provided in this report, or request for additional information should be addressed to the City Clerk, City of Santa Clarita, 23920 Valencia Blvd., Santa Clarita, California 91355. 14 BASIC FINANCIAL STATEMENTS 15 This page intentionally left blank. 16 GOVERNMENT -WIDE FINANCIAL STATEMENTS 17 ASSETS Current assets: Cash and investments Accounts receivable, net Interest receivable Taxes receivable Leases receivable, due within one year Due from other government Prepaid items Deposits Total current assets Noncurrent assets: Restricted Cash and Investments: Cash and investments Cash and investment with fiscal agents Cash and investment with PARS Lease receivable, due in more than one year Notes to RDA Successor Agency Net OPEB asset Long-term receivables Capital assets: Non -depreciable capital assets Depreciable capital assets, net Intangible capital assets, net Total capital assets, net Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to pensions Deferred outflows of resources related to OPEB Unamortized deferred loss on refunding Total deferred outflows of resources City of Santa Clarita Statement of Net Position June 30, 2024 Primary Government Governmental Business -Type Activities Activities Total $ 482,768,992 $ 21,218,288 $ 503,987,280 658,116 12,666 670,782 2,154,784 94,135 2,248,919 14,518,905 - 14,518,905 437,116 - 437,116 10,349,016 2,655,286 13,004,302 674,461 14,859 689,320 60,000 - 60,000 511,621,390 23,995,234 535,616,624 213,061 - 213,061 9,322,711 - 9,322,711 2,455,139 - 2,455,139 4,774,794 - 4,774,794 15,059,877 - 15,059,877 7,446,967 183,117 7,630,084 1,833,632 - 1,833,632 317,055,718 15,320,970 332,376,688 916,630,225 69,213,375 985,843,600 2,806,950 - 2,806,950 1,236,492,893 84,534,345 1,321,027,238 1,277,599,074 84,717,462 1,362,316,536 1,789,220,464 108,712,696 1,897,933,160 29,369,443 1,069,716 30,439,159 4,977,804 122,407 5,100,211 1,155,814 - 1,155,814 35,503,061 1,192,123 36,695,184 See accompanying Notes to the Basic Financial Statements. 18 City of Santa Clarita Statement of Net Position (Continued) June 30, 2024 Primary Government Governmental Business -Type Activities Activities Total LIABILITIES Current liabilities: Accounts payable and accrued liabilities 29,103,054 4,341,728 33,444,782 Accrued interest payable 437,311 - 437,311 Unearned revenue 2,729,922 - 2,729,922 Deposits payable 4,917,129 - 4,917,129 Due to the Successor Agency 7,734,479 - 7,734,479 Compensated absences - due within one year 2,967,937 85,710 3,053,647 Claims and judgement - due within one year 1,591,000 - 1,591,000 Long-term liabilities - due within one year 3,921,156 - 3,921,156 Total current liabilities 53,401,988 4,427,438 57,829,426 Noncurrent liabilities: Compensated absences - due in more than one year 2,049,921 32,609 2,082,530 Claims and judgement - due in more than one year 7,986,306 - 7,986,306 Long-term liabilities - due in more than one year 88,498,474 - 88,498,474 Developer credits 49,977,943 - 49,977,943 Net pension liabilities 40,704,237 1,482,595 42,186,832 Total noncurrent liabilities 189,216,881 1,515,204 190,732,085 Total liabilities 242,618,869 5,942,642 248,561,511 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to pensions 1,359,421 49,514 1,408,935 Deferred inflows of resources related to OPEB 18,282,737 449,575 18,732,312 Leases 5,176,559 - 5,176,559 Total deferred inflows of resources 24,818,717 499,089 25,317,806 NET POSITION Net investment in capital assets 1,154,546,653 84,534,345 1,239,080,998 Restricted: Landscape maintenance 30,696,888 - 30,696,888 Lighting District 17,276,463 - 17,276,463 Capital improvements 31,236,598 - 31,236,598 Transportation 55,945,169 - 55,945,169 Open space preservation 8,483,032 - 8,483,032 Public safety 655,936 - 655,936 Public library 7,073,423 - 7,073,423 Air quality improvement 643,333 - 643,333 Stormwater 5,344,828 - 5,344,828 Public education and government 892,726 - 892,726 Public television 47 - 47 Tourism marketing 895,650 - 895,650 Low and moderate income housing 4,588,221 - 4,588,221 Clean safe water 8,136,604 - 8,136,604 Debt service 1,086,933 - 1,086,933 Pensions 2,455,139 - 2,455,139 Other 8,073,679 - 8,073,679 Total restricted 183,484,669 - 183,484,669 Unrestricted (deficit) 219,254,617 18,928,743 238,183,360 Total net position $ 1,557,285,939 $ 103,463,088 $ 1,660,749,027 See accompanying Notes to the Basic Financial Statements. 19 City of Santa Clarita Statement of Activities For the Year Ended June 30, 2024 Program Revenues Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Governmental Activities: General government $ 42,903,612 $ 44,473,152 $ 2,072,268 $ 971,444 Public safety 38,352,436 1,975,034 648,422 4,653,590 Recreation and community services 21,576,455 8,453,094 35,000 - Public works 16,966,219 16,588,500 23,264,504 17,677,190 Community development 20,881,513 15,488,032 5,085,589 - Neighborhood services 35,112,719 12,860,528 271,530 3,785,795 Unallocated infrastructure depreciation 22,660,450 - - - Interest and fiscal charges 5,267,945 - - - Total governmental activities 203,721,349 99,838,340 31,377,313 27,088,019 Business -type Activities: Transit enterprise 42,110,510 6,161,116 27,714,574 3,509,025 Total business -type activities 42,110,510 6,161,116 27,714,574 3,509,025 Total primary government $ 245,831,859 $ 105,999,456 $ 59,091,887 $ 30,597,044 See accompanying Notes to the Basic Financial Statements. 20 City of Santa Clarita Statement of Activities (Continued) For the Year Ended June 30, 2024 Functions/Programs Governmental Activities: General government Public safety Recreation and community services Public works Community development Neighborhood services Unallocated infrastructure depreciation Interest and fiscal charges Total governmental activities Business -type Activities: Transit enterprise Total business -type activities Total primary government General revenues and transfers: General revenues: Taxes: Property taxes Sales taxes Franchise taxes Transient occupancy taxes Property transfer tax Property taxes in lieu of motor vehicle fee Investment income Miscellaneous Total general revenues Transfers Changes in net position Net position Beginning of year End of year Net (Expenses) Revenues and Changes in Net Position Governmental Business -Type Activities Activities Total $ 4,613,252 $ - $ 4,613,252 (31,075,390) - (31,075,390) (13,088,361) - (13,088,361) 40,563,975 - 40,563,975 (307,892) - (307,892) (18,194,866) - (18,194,866) (22,660,450) - (22,660,450) (5,267,945) - (5,267,945) (45,417,677) - (45,417,677) - (4,725,795) (4,725,795) - (4,725,795) (4,725,795) (45,417,677) (4,725,795) (50,143,472) 48,363,857 - 48,363,857 48,143,344 - 48,143,344 10,936,950 - 10,936,950 5,290,241 - 5,290,241 1,340,239 - 1,340,239 308,711 - 308,711 13,600,790 418,986 14,019,776 3,485,235 - 3,485,235 131,469,367 418,986 131,888,353 254,834 (254,834) - 86,306,524 (4,561,643) 81,744,881 1,470,979,415 108,024,731 1,579,004,146 $ 1,557,285,939 $ 103,463,088 $ 1,660,749,027 See accompanying Notes to the Basic Financial Statements. 21 This page intentionally left blank. 22 FUND FINANCIAL STATEMENTS 23 This page intentionally left blank. 24 GOVERNMENTAL FUND FINANCIAL STATEMENTS 25 City of Santa Clarita Balance Sheet Governmental Funds June 30, 2024 Special Revenue Funds Landscape General Bridge and Impact Maintenance Fund Thoroughfare Fee District #1 ASSETS Cash and investments $ 271,340,002 $ 15,530,042 $ 10,391,173 $ 27,638,623 Accounts receivable, net 453,650 - - 13,322 Interest receivable 1,267,816 69,698 48,909 121,370 Taxes receivables 13,532,621 - - 160,000 Loans receivable - - - - Leases receivable 5,211,910 - - - Notes to RDA Successor Agency 7,350,839 - - - Prepaid items 549,583 - - 642 Due from other governments 276,112 - - - Due from other funds 4,963,420 - - - Advance to other funds 595,046 - - - Deposits with others 60,000 - - - Restricted assets: Cash and investments - - - - Cash and investments with fiscal agents 9,318,302 - - - Cash and investments with PARS 2,455,139 - - - Total assets $ 317,374,440 $ 15,599,740 $ 10,440,082 $ 27,933,957 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 14,369,060 $ 46,767 $ 4,124,760 $ 1,000,685 Deposit payable 4,917,129 - - - Due to other funds 5,372 - - - Due to the Successor Agency 7,700,000 - - - Unearned revenue 1,063,567 - - - Advance from other funds - 595,046 - - Total liabilities 28,055,128 641,813 4,124,760 1,000,685 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 2,215,119 368,724 - - Leases 5,176,559 - - - Total deferred inflows of resources 7,391,678 368,724 - - Fund Balances: Nonspendable 8,555,468 - - 642 Restricted 11,773,441 14,589,203 6,315,322 26,932,630 Assigned 193,570,167 - - - Unassigned (deficit) 68,028,558 - - - Total fund balances 281,927,634 14,589,203 6,315,322 26,933,272 Total liabilities, deferred inflows of resources, and fund balances $ 317,374,440 $ 15,599,740 $ 10,440,082 $ 27,933,957 (Continued) See accompanying Notes to the Basic Financial Statements. 26 City of Santa Clarita Balance Sheet (Continued) Governmental Funds June 30, 2024 Nonmajor Total Governmental Governmental Funds Funds ASSETS Cash and investments $ 136,294,992 $ 461,194,832 Accounts receivable, net 164,731 631,703 Interest receivable 553,111 2,060,904 Taxes receivables 826,284 14,518,905 Loans receivable 1,833,632 1,833,632 Leases receivable 5,211,910 Notes to RDA Successor Agency 7,709,038 15,059,877 Prepaid items 124,236 674,461 Due from other governments 10,072,904 10,349,016 Due from other funds - 4,963,420 Advance to other funds - 595,046 Deposits with others - 60,000 Restricted assets: Cash and investments 213,061 213,061 Cash and investments with fiscal agents 4,409 9,322,711 Cash and investments with PARS - 2,455,139 Total assets $ 157,796,398 $ 529,144,617 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 9,419,281 $ 28,960,553 Deposit payable - 4,917,129 Due to other funds 4,958,048 4,963,420 Due to the Successor Agency 34,479 7,734,479 Unearned revenue 1,666,355 2,729,922 Advance from other funds - 595,046 Total liabilities 16,078,163 49,900,549 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 3,018,580 5,602,423 Leases - 5,176,559 Total deferred inflows of resources 3,018,580 10,778,982 Fund Balances: Nonspendable 124,236 8,680,346 Restricted 138,751,013 198,361,609 Assigned 1,755,136 195,325,303 Unassigned (deficit) (1,930,730) 66,097,828 Total fund balances 138,699,655 468,465,086 Total liabilities, deferred inflows of resources, and fund balances $ 157,796,398 $ 529,144,617 (Concluded) See accompanying Notes to the Basic Financial Statements. 27 City of Santa Clarita Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2024 Special Revenue Funds General Bridge and Developer Public Impact Fund Thoroughfare Fee Library Fee REVENUES: Taxes $114,227,509 $ - $ - Licenses, and permits 12,756,490 - - Special assessments - - - Intergovernmental 3,548,921 - - Charges for services 13,300,665 - Investment income 12,824,215 2,739,201 360,714 Fines and forfeitures 1,247,292 - - Developer fees - 5,961,690 5,125,575 Other revenues 814,177 368,724 - Total revenues 158,719,269 9,069,615 5,486,289 EXPENDITURES: Current: General government 16,038,382 - - Public safety 31,851,337 - 3,960,747 Recreation and community services 17,110,899 - - Public works 9,161,907 172,123 - Community development 18,096,950 - - Neighborhood services 2,981,218 - - Capital outlay 30,323,530 267,558 307,956 Debt service: Principal retirement 872,345 - - Interest and fiscal charges 11,140 2,194,901 - Total expenditures 126,447,708 2,634,582 4,268,703 REVENUES OVER (UNDER) EXPENDITURES 32,271,561 6,435,033 1,217,586 OTHER FINANCING SOURCES (USES): Issuance of debt 148,042 - - Transfers in 3,463,778 - - Transfers out (20,909,335) - - Total other financing sources (uses) (17,297,515) - - NET CHANGE IN FUND BALANCES 14,974,046 6,435,033 1,217,586 FUND BALANCES: Beginning of year, as previously reported 267,762,150 8,154,170 12,105,435 5,407,159 - Change within financial reporting entity: Major to/from nonmajor funds - - (12,105,435) (5,407,159) - Fund reclassification (808,562) - - - 5,097,736 Beginning of year, as restated (Note 19) 266,953,588 8,154,170 - - 5,097,736 End of year $ 281,927,634 $ 14,589,203 $ - $ - $ 6,315,322 (Continued) See accompanying Notes to the Basic Financial Statements. 28 City of Santa Clarita Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds For the Year Ended June 30, 2024 REVENUES: Taxes Licenses, and permits Special assessments Intergovernmental Charges for services Investment income Fines and forfeitures Developer fees Other revenues Total revenues EXPENDITURES: Current: General government Public safety Recreation and community services Public works Community development Neighborhood services Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Issuance of debt Transfers in Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCES FUND BALANCES: Beginning of year, as previously reported Change within financial reporting entity: Major to/from nonmajor funds Fund reclassification Beginning of year, as restated (Note 19) End of year Special Revenue Funds Landscape Maintenance American District#1 Rescue Plan $ 306,309 15,752,739 1,092,874 17,151,922 Nonmajor Total Governmental Governmental Funds Funds $ 13,766,349 $128,300,167 - 12,756,490 23,932,666 39,685,405 52,583,620 56,132,541 1,414,309 14,714,974 4,841,346 21,858,350 758,726 2,006,018 3,610,538 14,697,803 692,656 1,875,557 101,600,210 292,027,305 14,027,998 9,779,659 39,846,039 - 553,656 36,365,740 - - 17,110,899 - 7,966,231 17,300,261 - 2,643,177 20,740,127 146,627 30,584,253 33,712,098 515,498 39,788,853 71,203,395 - 3,025,084 3,897,429 - 3,191,005 5,397,046 14,690,123 97,531,918 245,573,034 2,461,799 4,068,292 46,454,271 - 336,717 484,759 - 23,402,523 26,866,301 (47,000) (5,655,132) (26,611,467) (47,000) 18,084,108 739,593 2,414,799 22,152,400 47,193,864 24,518,473 - 103,323,835 421,271,222 - - 17,512,594 - - - (4,289,174) - 24,518,473 - 116,547,255 421,271,222 $ 26,933,272 $ - $138,699,655 $468,465,086 (Concluded) See accompanying Notes to the Basic Financial Statements. 29 City of Santa Clarita Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Position June 30, 2024 Total Fund Balances - Total Governmental Funds $ 468,465,086 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not current financial resources and therefore are not reported in governmental funds. Those assets consist of: Amount reported in government -wide statement of position: Nondepreciable assets $ 317,055,718 Depreciable assets, net of $1,553,005 reported in Internal Service Funds 915,077,220 Intangible assets 2,806,950 1,234,939,888 Some of the City's receivables for franchise fees, operating and capital grant reimbursements will be collected after year end, but are not available soon enough to pay for current -period expenditures, and therefore, are reported as unavailable revenues in the governmental funds. 5,602,423 Net pension liabilities and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements: Deferred outflows of resources related to pensions, net of $111,791 reported in Internal Service Funds 29,257,652 Net pension liabilities, net of $(154,941) reported in Internal Service Funds (40,549,296) Deferred inflows of resources related to pensions, net of $(5,174) reported in Internal Service Fund (1,354,247) Net other postemployment benefits liability and the related deferred outflows of resources and deferred inflows of resources are not due and payable in the current period or not available for current expenditures and are not reported in the governmental fund financial statements: Deferred outflows of resources related to OPEB, net of $15,300 reported in Internal Service Funds 4,962,504 Net OPEB asset net of $22,888 reported in Internal Service Funds 7,424,079 Deferred inflows of resources related to OPEB, net of $(56,195) reported in Internal Service Funds (18,226,542) Internal service funds are used by the City to charge the cost of materials and supplies, maintenance and repair of vehicles and equipment and printing services provided to the various departments of the City. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Position. 13,413,239 Accrued interest payable for the current portion of interest due on long-term debt has not been reported in the governmental funds. (437,311) Long-term liabilities applicable to the City's governmental activities are not due and payable in the current period and, accordingly are not reported as fund liabilities. All liabilities, both current and long-term are reported in the Statement of Net Position. Unamortized deferred loss on refunding 1,155,814 Long-term debt (88,732,461) Unamortized bond premium (3,687,169) Developers credits (49,977,943) Compensated absences, net of $(48,081) reported in Internal Service Funds (4,969,777) Net position of governmental activities $ 1,557,285,939 See accompanying Notes to the Basic Financial Statements. 30 City of Santa Clarita Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government -Wide Statement of Activities For the Year Ended June 30, 2024 Net change in fund balances - total governmental funds: $ 47,193,864 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those capital assets is allocated over the estimated useful lives as depreciation expense. This is the amount by which capital expenditures exceeded depreciation in the current period: Capital outlay expenditures, net of $293,723 reported in Internal Service Funds $ 82,362,796 Depreciation and amortization expense, net of $(346,967) reported in Internal Service Funds (34,220,701) 48,142,095 The net effect of disposal of capital assets, net of $(97,370) reported in Internal Service Funds Certain accrued revenues such as franchise fee and grants do not provide current financial resources and therefore, are not reported in the governmental funds as revenues. This is the amount of the net change in these accrued revenue amounts during the current period. Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds: Change in compensated absences, net of $(31,070) reported in internal service funds Pension expense, net of pension contribution made after measurement date OPEB expense, net of OPEB contribution made after measurement date Accrued interest for long-term debt Principal repayment of long-term debt Bond premium and deferred charges amortization Issuance of long-term debt The issuance of Bridge and Thoroughfare district credits does not impact governmental funds, but increases long-term liabilities in the Statement of Net Position. Redemptions of the credit does not impact expenditures in the governmental funds, but reduces long-term liabilities in the Statement of Net Position. Net effect of issuance of district credits Internal service funds are used by management to charge the costs of certain activities, such as workers' compensation self-insurance, general liability self-insurance, vehicles, and technology to individual funds. The net revenue (expense) of these internal service funds are reported as governmental activities. Change in net position of governmental activities (9,454,590) (3,025,256) (268,627) (3,169,069) 2,075,694 14,490 3,897,429 114,611 (484,759) (142,409) 1,413,051 $ 86,306,524 See accompanying Notes to the Basic Financial Statements. 31 This page intentionally left blank. 32 PROPRIETARY FUND FINANCIAL STATEMENTS 33 This page intentionally left blank. 34 City of Santa Clarita Statement of Net Position Proprietary Funds June 30, 2024 ASSETS Current assets: Cash and investments Accounts receivable, net Interest receivable Due from other governments Prepaid items Total current assets Noncurrent assets: Net OPEB asset Capital assets: Capital assets, not being depreciated Capital assets, being depreciated, net Total capital assets Total noncurrent assets Total assets DEFERRED OUTFLOW OF RESOURCES Deferred outflows of resources related to pensions Deferred outflows of resources related to OPEB Total deferred outflow of resources LIABILITIES Current liabilities: Accounts payable and accrued liabilities Compensated absence, due within one year Claims and judgments, due within one year Total current liabilities Noncurrent liabilities: Compensated absences payable, due in more than one year Claims and judgments, due in more than one year Net pension liabilities Total noncurrent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to pensions Deferred inflows of resources related to OPEB Total deferred inflows of resources NET POSITION Investment in capital assets Unrestricted Total net position Business -type Governmental Activities Activities Transit Enterprise Fund $ 21,218,288 12,666 94,135 2,655,286 14,859 23,995,234 183,117 15,320,970 69,213,375 84,534,345 84,717,462 108,712,696 1,069,716 122,407 1,192,123 Internal Service Funds $ 21,574,160 26,413 93,880 21,694,453 22,888 1,553,005 1,553,005 1,575,893 23,270,346 111,791 15,300 127,091 4,341,728 142,501 85,710 9,961 - 1,591,000 4,427,438 32,609 1,482,595 1,515,204 5,942,642 49,514 449,575 499,089 1,743,462 38,120 7,986,306 154,941 8,179,367 9,922,829 5,174 56,195 61,369 84,534,345 1,553,005 18,928,743 11,860,234 $ 103,463,088 $ 13,413,239 See accompanying Notes to the Basic Financial Statements. 35 City of Santa Clarita Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds For the Year Ended June 30, 2024 OPERATING REVENUES: Charges for services Other revenues Total operating revenues OPERATING EXPENSES: Administration and personnel services Transportation services Services and supplies Depreciation expense Total operating expenses OPERATING INCOME (LOSS) NONOPERATING REVENUES (EXPENSES): Intergovernmental Investment income (Loss) on sale of capital assets Total nonoperating revenues (expenses) TRANSFERS AND CAPITAL CONTRIBUTIONS: Transfer out Capital grants and contributions Contribution of capital assets Total capital contributions and transfers CHANGE IN NET POSITION (DEFICIT) NET POSITION: Beginning of year End of year Transit Enterprise Fund Business -type Governmental Activities Activities Internal Service Funds $ 5,504,367 $ 6,061,053 656,749 19,463 6,161,116 6,080,516 3,524,492 359,330 20,626,923 - 3,302,149 4,634,788 6,733,225 346,967 34,186,789 5,341,085 (28,025,673) 739,431 27,714,574 - 418,986 770,990 (420,531) (97,370) 27,713,029 673,620 (254,834) 3,509,025 (7,503,190) (4,248,999) (4,561,643) 1,413,051 108,024,731 12,000,188 $ 103,463,088 $ 13,413,239 See accompanying Notes to the Basic Financial Statements. 36 City of Santa Clarita Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2024 Business -type Governmental Activities Activities Transit Internal Enterprise Fund Service Funds CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers and users $ 6,159,492 $ 6,055,456 Cash paid to suppliers for goods and services (25,110,177) (465,186) Cash paid to employees for services (1,422,493) (322,381) Cash paid to claims - (1,979,265) Net cash provided by (used in) operating activities (20,373,178) 3,288,624 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Cash transfers out (254,834) - Federal and state funding received 29,673,287 - Net cash provided by noncapital fmancing activities 29,418,453 - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Capital grants and contributions 3,509,025 - Acquisition of capital assets (2,518,600) (293,723) Proceed from sale of capital assets 20,000 Net cash provided by (used in) capital and related fmancing activities 1,010,425 (293,723) CASH FLOWS FROM INVESTING ACTIVITIES: Investment income received 366,131 743,455 Net cash provided by investing activities 366,131 743,455 Net increase in cash and cash equivalents 10,421,831 3,738,356 CASH AND CASH EQUIVALENTS: Beginning of year 10,796,457 17,835,804 End of year $ 21,218,288 $ 21,574,160 NONCASH ITEM FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Capital contribution made $ (7,503,190) $ - NET INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Operating income (loss) $ (28,025,673) 739,431 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 6,733,225 346,967 Change in assets and liabilities: (Increase) decrease in accounts receivable (1,624) (25,060) (Increase) decrease in prepaid items 6,827 - (Increase) decrease in net pension asset 119,436 (7,512) (Increase) decrease in net OPEB asset (60,097) 12,482 (Increase) decrease in deferred outflows of resources related to pensions 16,240 1,697 (Increase) decrease in deferred outflows of resources related to OPEB 82,843 10,356 Increase (decrease) in accounts payable and accrued liabilities 867,733 53,797 Increase (decrease) in compensated absences (18,337) 31,070 Increase (decrease) in claims and judgements - 2,136,710 Increase (decrease) in deferred inflows of resources related to pensions (19,806) (2,070) Increase (decrease) in deferred inflows of resources related to OPEB (73,945) (9,244) Total adjustment 7,652,495 2,549,193 Net cash provided by (used in) operating activities $ (20,373,178) $ 3,288,624 See accompanying Notes to the Basic Financial Statements. 37 This page intentionally left blank. 38 FIDUCIARY FUND FINANCIAL STATEMENTS 39 This page intentionally left blank. 40 City of Santa Clarita Statement of Fiduciary Net Position Fiduciary Funds June 30, 2024 ASSETS Cash and investments Interest receivable Contributions receivable Due from the City Restricted: Cash and investments Cash and investments held with PARS: Cash and cash equivalents U.S. Treasury U.S. government sponsored enterprise securities Corporate notes Foreign notes Municipal bonds Mutual funds - equity Mutual funds - fixed income Cash and investments with fiscal agent Total assets DEFERRED OUTFLOWS OF RESOURCES Unamortized loss on refunding Total deferred outflows of resources LIABILITIES Accounts payable and accrued liabilities Interest payable Long term liabilities, due within one year Long term liabilities, due in more than one year Total liabilities NET POSITION Restricted for: Other post employment benefits Individual, organizations, and other governments Total net position (deficit) Pension (and Other Employee Benefit) Private -Purpose Trust Fund Trust Fund Other Post Redevelopment Employment Benefits Successor ("OPEB") Trust Fund Agency Custodial Funds $ - $ 1,431,256 $ 1,962,074 103,068 6,257 8,526 - - 31,260 - 7,734,479 - 1,439,216 - - 5,317,960 - - 3,404,210 4,677,059 - - 242,351 - - 272,930 - - 30,914,136 - - 4,685,541 - - - 1,849,539 2,819,178 51,056,471 11,021,531 4,821,038 - 1,803,519 - - 1,803,519 - - 299 2,495 - 278,383 - - 1,063,660 - - 43,303,463 - - 44,645,805 2,495 51,056,471 - - - (31,820,755) 4,818,543 $ 51,056,471 $ (31,820,755) $ 4,818,543 See accompanying Notes to the Basic Financial Statements. 41 City of Santa Clarita Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Year Ended June 30, 2024 Pension (and Other Employee Benefit) Private -Purpose Trust Fund Trust Fund Other Post Redevelopment Employment Benefits Successor Custodial (OPEB) Trust Fund Agency Funds ADDITIONS: Redevelopment property tax trust fund $ - $ 3,535,694 $ - Special assessment from property owners - - 2,354,133 Employer contributions 278,000 - - Net investment income (loss) 5,817,416 29,469 84,863 Total additions 6,095,416 3,565,163 2,438,996 DEDUCTIONS: Benefit payments to plan participants 1,658,038 - - Administrative expenses 110,705 5,292 45,822 Payments for debt services - 1,461,155 2,276,129 Payments to other governments - - 274,063 Total deductions 1,768,743 1,466,447 2,596,014 Change in net position 4,326,673 2,098,716 (157,018) NET POSITION: Beginning of year 46,729,798 (33,919,471) 4,975,561 End of year $ 51,056,471 $ (31,820,755) $ 4,818,543 See accompanying Notes to the Basic Financial Statements. 42 NOTES TO THE BASIC FINANCIAL STATEMENTS 43 This page intentionally left blank. 44 City of Santa Clarita Index to the Notes to the Basic Financial Statements For the Year Ended June 30, 2024 Note 1— Summary of Significant Accounting Policies.......................................................................................47 A. Financial Reporting Entity...................................................................................................................47 B. Basis of Accounting and Measurement Focus.....................................................................................48 C. Cash, Cash Equivalents and Investments.............................................................................................52 D. Cash and Investments with Fiscal Agents............................................................................................52 E. Fair Value Measurement......................................................................................................................52 F. Interf nid Transactions.........................................................................................................................53 G. Allowance for Uncollectible Accounts................................................................................................53 H. Prepaid Items.......................................................................................................................................53 I. Lease Receivable..................................................................................................................................53 J. Capital Assets.......................................................................................................................................54 K. Deferred Outflows and Inflows of Resources......................................................................................55 L. Unearned and Unavailable Revenue....................................................................................................55 M. Long -Term Debt..................................................................................................................................55 N. Lease Liabilities...................................................................................................................................55 O. Subscription Liabilities........................................................................................................................56 P. Compensated Absences........................................................................................................................57 Q. Claims and Judgements........................................................................................................................57 R. Pensions...............................................................................................................................................57 S. Other Postemployment Benefits ("OPEB").........................................................................................57 T. Property Taxes and Special Assessments............................................................................................58 U. Net Position and Fund Balances..........................................................................................................58 V. Use of Estimates...................................................................................................................................60 W. Implementation of New GASB Pronouncement..................................................................................60 X. Upcoming Government Accounting Standards Implementation.........................................................60 Note2 — Cash and Investments............................................................................................................................60 A. Deposits................................................................................................................................................61 B. Investments..........................................................................................................................................62 C. Investments Authorized by Debt Agreements.....................................................................................63 D. Risk Disclosures...................................................................................................................................63 E. Fair Value Measurement......................................................................................................................65 F. Local Agency Investment Fund ("LAIF")...........................................................................................66 G. Loas Angeles County Pooled Investment Fund ("LACPIF")..............................................................66 H. California Asset Management Program ("CAMP")............................................................................66 Note3 — Accounts Receivable...............................................................................................................................66 Note4 — Loans Receivable....................................................................................................................................66 Note5 — Due from Other Government................................................................................................................67 Note 6 — Notes to RDA Successor Agency...........................................................................................................67 Note7 — Lease Receivables...................................................................................................................................67 Note8 — Interfund Transactions..........................................................................................................................68 A. Due From/To Other Funds...................................................................................................................68 B. Advances To/From Other Funds..........................................................................................................68 C. Transfers In/Out...................................................................................................................................68 Note9 — Capital Assets..........................................................................................................................................70 A. Governmental Activities......................................................................................................................70 B. Business -Type activities......................................................................................................................71 45 City of Santa Clarita Index to the Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note10 — Deposit Payable.....................................................................................................................................72 NoteI I — Long -Term Liabilities..........................................................................................................................72 A. Governmental Activities......................................................................................................................72 B. Business -types Activities....................................................................................................................79 C. Fiduciary Funds...................................................................................................................................80 D. Non -City Obligation............................................................................................................................82 Note12 — Risk Management.................................................................................................................................82 A. Special Districts Risk Management Authority ("SDRMA")...............................................................82 B. California Joint Powers Insurance Authority ("CJPIA").....................................................................83 C. Claims and Judgments Payable............................................................................................................84 Note13 — Pension Plan..........................................................................................................................................85 A. General Information about the Pension Plan.......................................................................................85 B. Net Pension Liability...........................................................................................................................86 C. Changes in the Net Pension Liability...................................................................................................88 D. Pension Expense, Deferred Outflows and Inflows of Resources Related to Pensions ........................89 Note 14 — Other Postemployment Benefits ("OPEB").......................................................................................90 A. General Information about the OPEB Plan ..........................................................................................90 B. Net OPEB Liability..............................................................................................................................91 C. Changes in the Net OPEB Liability.....................................................................................................92 D. Cash and Investment Held in Trust......................................................................................................94 E. Concentrations of Credit Risk..............................................................................................................94 Note 15 — Deferred Compensation Plan/Defined Contribution Plan................................................................95 Note16 — Developer Credits.................................................................................................................................95 Note 17 — Net Investment in Capital Assets.........................................................................................................95 Note 18 — Classification of Fund Balances...........................................................................................................96 Note 19 — Changes to or within the Financial Reporting Entity.......................................................................97 Note 20 — Santa Clarita Watershed Recreation and Conservancy Authority..................................................97 Note 21— Commitments and Contingencies........................................................................................................98 A. Project Commitments...........................................................................................................................98 B. Encumbrances......................................................................................................................................98 C. Contingencies.......................................................................................................................................98 Note 22 — Other Required Disclosure..................................................................................................................99 A. Deficit Net Positions and Fund Balances.............................................................................................99 46 City of Santa Clarita Notes to the Basic Financial Statements For the Year Ended June 30, 2024 Note 1 — Summary of Significant Accounting Policies The basic financial statements of the City of Santa Clarita, California, (the "City") have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") as applied to governmental agencies. The Governmental Accounting Standards Board ("GASB") is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the significant policies: A. Financial Reporting Entity The City was incorporated on December 15, 1987, as a general law city. The City operates under a council- manager form of government and provides its citizens with a full range of municipal services, either directly or under contract with the County of Los Angeles. Such services include public safety (police and fire protection), building permit/plan approval, planning, community development, recreation, animal control, and street maintenance. Component Units The financial statements include the financial activities of the City of Santa Clarita, the primary government, and its component units. Component units are legally separate entities for which the primary government is financially accountable. The City has two component units, the Santa Clarita Public Financing Authority (the "Authority") and the Santa Clarita Public Television Authority (the "Television Authority), and one fiduciary component unit, the Other Post -Employment Benefits ("OPEB") Plan Trust Fund. Although these component units are legally separate from the City, they have been "blended" as though they are part of the City because the component units' governing body is substantially the same as the City's and there is a financial benefit or burden relationship between the City and the component units; management of the City has operational responsibilities for the component unit; and/or the component unit provides services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclusively, benefits the City, even though it does not provide services directly to it. Management determined that the following component units should be blended based on the criteria above: Santa Clarita Public Financing Authority -The Authority was established in July 1991 as a joint powers authority between the City and the former redevelopment agency for the purpose of providing financing and funding of public capital improvements and the acquisition of property. On May 10, 2016, the City Council adopted Resolution 16- 15 that removed the Successor Agency from the agreement and substituted the Santa Clarita Parking Authority. The Authority is governed by the Board of the Authority, which is comprised of City Council. Additionally, the City and Authority have a financial benefit or burden relationship. Therefore, the Authority is reported as a blended component unit in the City's financial statements. The Authority's financial data and activity are reported within the debt service and capital projects fund types of the City. Separate financial statements for the Authority are not prepared. Santa Clarita Public Television Authority - The Santa Clarita Public Television Authority, California (the "Authority") is a joint powers authority formed under the provision of Section 6500 of the California Government Code in 2009 by the City and the William S. Hart Union High School District. The primary purpose of the Television Authority is to produce local community service programming. The Television Authority provides public affairs and informational programming, as well as providing programming services for local government, educational and public agency meetings. The following entities have joined the Authority: Saugus Union School District, Newhall School District, Sulfur Springs School District, Castaic Union School District, and College of the Canyons. The Authority has a seven -member Board of Directors consisting of one member appointed by each school district, one member from the College, and one member from the City. The City and Television Authority have a financial benefit or burden relationship; therefore, the Television Authority is reported as a blended component unit in the City's financial statements as special revenue fund. Separate financial statements for the Television Authority are prepared and can be obtained from the City's Finance Division. 47 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 1— Summary of Significant Accounting Policies (Continued) A. Financial Reporting Entity (Continued) Other Post Employment Benefits ("OPEB ") Plan Trust Fund - In December 2011, the City Council approved Resolution 11-89, adopting the Public Agencies Post -Retirement Health Care Plan Document and Trust Agreement. The OPEB Plan Trust is a tax -qualified irrevocable trust, organized under Internal Revenue Code ("IRC") section 115, established to pre -fund OPEB, and legally separate from the City. The Plan Trustee is U.S. Bank and the Trust Administrator is Public Agencies Retirement Services ("PARS"). The City has administrative involvement with the Plan, through City management and the City Council, in directing the use of assets to ensure benefits are paid to intended recipients. Further, as the City is required to contribute to the Plan. The OPEB Plan Trust Fund is reported as a fiduciary activity as the City has control of the trust assets and the activity is OPEB arrangement administered through a qualifying trust. B. Basis of Accounting and Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. City resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Government -Wide Financial Statements The Government -Wide Financial Statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets, including capital assets, as well as infrastructure assets, deferred outflows of resources, liabilities, including long-term liabilities, and deferred inflows of resources, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. On an accrual basis, revenue from sales taxes is recognized in the period in which the taxable sale takes place. Revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the City must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. Fiduciary activities are not included in these statements. Certain types of transactions are reported as program revenues for the City in three categories: • Charges for services • Operating grants and contributions • Capital grants and contributions Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business -type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business -type activities have not been eliminated. The following interfund activities have been eliminated: 48 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 1— Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Government -Wide Financial Statements (Continued) • Due from and to other funds • Advances to and from other funds • Transfers in and out Governmental Fund Financial Statements A Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances are presented for all major governmental funds and aggregated nonmajor funds. Accompanying schedules are presented to reconcile and explain the differences in fund balances as presented in these statements, to the net position presented in the government -wide financial statements. The City has presented all major funds that met the applicable criteria. All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Change in Fund Balances presents increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both "measurable" and "available" to finance expenditures of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period for property and sales tax, and 90 days for all other nonexchange transaction revenues. Expenditures generally are recorded when a liability is incurred. However, debt service expenditures, expenditures related to compensated absences, pension and other post -employment benefits, and the redemption of district credits are recorded only when payment is due. Revenues are recorded when received in cash, except those revenues subject to accrual are recognized when due. Property taxes, taxpayer -assessed tax revenues (e.g., franchise taxes, sales taxes, motor vehicle fees, etc.), net of estimated refunds and uncollectible amounts, and intergovernmental revenues associated with the current fiscal period are all considered susceptible to accrual and so have been recognized as revenues of the current fiscal period to the extent normally collected within the availability period, as defined above. The City reports the following major governmental funds: ➢ The General Fund is the primary operating fund of the City. It is used to account for all financial resources of the City that are not required to be accounted for in another fund. ➢ The Bridge and Thoroughfarepecial Revenue Fund is used to account for restricted district fees received from developers as set by the State Subdivision Law and the Los Angeles County and City of Santa Clarita, which are used for the construction of street, highway, bridge, and other thoroughfare in the Bouquet Canyon, Eastside Canyon, Via Princessa, and Valencia districts. This fund also accounts for the issuance and redemption of district credits associated with the contribution of infrastructure. The City has elected the Bridge and Thoroughfare Special Revenue Fund as a major fund for public interest purposes. ➢ The Impact Fees Special Revenue Fund is used to account for impact fees received from new development projects and are required to be used only for those purposes for which the impact fees were collected. The City has elected the Impact Fee Fund as a major fund for financial presentation purposes. 49 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 1— Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements (Continued) ➢ The Landscape Maintenance District #1 Special Revenue Fund is used to account for property tax receipts and disbursements related to the landscape maintenance district. The City has elected the Landscape Maintenance District #1 Special Revenue Fund as a major fund for public interest purposes. Additionally, the City reports the following governmental fund types: The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted or committed to expenditures for specified purposes. The Debt Service Funds are used to account for the accumulation of resources for and payment of interest and principal on long-term debt. The Capital Projects Funds are used to account for financial resources used for the acquisition or construction of major capital facilities (other than those financed by the proprietary funds). Pronrietary Fund Financial Statements Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Operating revenues and expenses result from the operating and maintenance of the local public transit services. The operating revenues consist of charges to customers for the service provided. Operating expenses include the costs of providing these services, administrative expenses and depreciation expense. All revenues and expenses not meeting these definitions and which are not capital in nature are reported as non -operating revenues and expenses. A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government -Wide Financial Statements. The City's internal service funds include three individual funds which provide services directly to other City funds. These areas of service include self-insurance, computer replacement, and vehicle replacement. These funds provide service to other City departments on a cost reimbursement basis. The City reports the following major proprietary fund: ➢ The Transit Enterprise Fund is used to account for the operation of the City's local public transit bus system. 50 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 1— Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Fiduciary Fund Financial Statements Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City's fiduciary funds represent an OPEB Plan trust fund, a private purpose trust fund, and custodial funds. These fiduciary funds are accounted for on the accrual basis of accounting. These fiduciary fund activity assets are controlled by the City and the assets are not derived 1) solely from the government's own -source revenues or 2) from government -mandated nonexchange transactions or voluntary nonexchange transactions. The City reports the following three types of fiduciary funds: ➢ The OPEB Trust Fund is used to account for transactions for retiree health care. The City has administrative involvement of the Plan, and has reported the trust and Plan in its financial statements. ➢ The Redevelopment SuccessorAgency Private -Purpose Trust Fund is used to account for monies received from the Los Angeles County Auditor Controller for the repayment of the enforceable obligations of the former Santa Clarita Redevelopment Agency. These funds are restricted for the sole purpose of payment of items on an approved Recognized Obligation Payment Schedule (ROPS). ➢ The Custodial Funds are used to account for assets for the benefit of organizations or other governments that are not part of the City. In addition, the assets are not derived from the City's provision of goods or services to those individuals, organizations, or other governments. The following funds are used to account for assets and liabilities held by the City as an agent and related to the debt service activity on non -commitment special assessment debt: Five funds are reported under the custodial fund type: • Assessment District No. 92-2 Fund (Golden Valley Road) • Assessment District NO. 99-1 Fund (Vermont Everett) • Community Facilities District No. 2002-1 Fund (Valencia Town Center) • Community Facilities District No. 2016-1 Fund (Vista Canyon) • Santa Clarita Watershed Recreation and Conservancy Authority (the "Watershed Authority") Fund The Assessment District and Community Facilities District Custodial Funds were established to account for receipt of special taxes and assessments used to pay principal and interest on related bonds that are not direct City liabilities, as well as receipt and disbursement of capital project bond proceeds related to bonds that are not direct obligations of the City. The Watershed Authority Custodial Fund is used to account for assets and liabilities held by the City as an agent and related to the park and open space lands for the Watershed Authority. The Watershed Authority holds land in the amount of $9,937,976 and other capital assets net of accumulated depreciation in the amount of $52,680. These amounts are excluded from the City's custodial fund, but reported within the Watershed Authority's financial statements. 51 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 1— Summary of Significant Accounting Policies (Continued) C. Cash, Cash Equivalents and Investments The City pools its available cash for investment purposes. The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. Cash and cash equivalents are combined with investments and displayed as cash and investments. For purposes of the statement of cash flows of the proprietary fund types, cash and cash equivalents include all investments, as the City operates an internal cash management pool that maintains the general characteristics of a demand deposit account. Highly liquid money market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are reported at fair value. Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. The City participates in the Local Agency Investment Fund ("LAIF"), Los Angeles County Pooled Investment Fund ("LACPIF"), and the California Asset Management Program ("CAMP"), investment pool managed by the State of California, Los Angeles, County, and CAMP. LAIF has invested a portion of the pool funds in structured notes and asset -backed securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these structured notes and asset -backed securities are subject to market risk as a result of changes in interest rates. All investments in LAIF, LACPIF, and CAMP are reported at amortized cost, which approximates fair value. Certain disclosure requirements, if applicable, are provided for deposit and investment risk in the following areas: ➢ Interest Rate Risk ➢ Credit Risk o Overall o Custodial Credit Risk o Concentration of Credit Risk ➢ Foreign Currency Risk D. Cash and Investments with Fiscal Agents The unexpended bond proceeds of the City's bonds are classified as restricted assets because their use is restricted to the purpose for which the bonds were originally issued. The City's cash and investments held by fiscal agents are pledged to the payment or security of certain long-term debt issuances. The California Government Code provides that these monies, in the absence of specific statutory provisions governing the issuance of the bonds, may be invested in accordance with the ordinance, resolutions, or indentures specifying the types of investments its trustees or fiscal agents may make. E. Fair Value Measurement U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosure about fair value measurement. Investments, unless otherwise specified at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows: ➢ Level I — Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. ➢ Level 2 — Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date. ➢ Level 3 — Unobservable inputs that reflect management's best estimate of what market participants would use in pricing the assets or liabilities at the measurement date. 52 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 1— Summary of Significant Accounting Policies (Continued) F. Interfund Transactions Outstanding short-term borrowing between funds are reported to as "due from/to other funds." Interfund loans are reported as advances to and from other funds and are eliminated upon consolidation. Advances to other funds are presented as nonspendable in General Fund's fund balance to indicate that they are not in a spendable form. For all other funds, advances to other funds are presented as restricted fund balance since monies collected in future years would be restricted. When there are residual balances outstanding between the governmental activities and business - type activities, they are reported in the government -wide financial statements as "internal balances." Interfund services provided are treated as revenues and expenses. Administrative overhead charges included with centralized expenses charged by the General Fund are included in the direct expenses of enterprise activities. Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interf nid transactions are treated as transfers. Transfers between governmental or between proprietary funds are eliminated as part of the reconciliation to the government -wide financial statements. Any residual balances outstanding between governmental and business -type activities are reported in the government -wide financial statements as "transfers." G. Allowance for Uncollectible Accounts Allowances for uncollectible accounts are maintained on customer and other trade receivables that historically experience uncollectible amounts. Allowances are based on collection experience and management's evaluation of the current status of existing receivables. H. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government -wide and fund financial statements by using purchase method. A nonspendable fund balance has been reported in the governmental funds to show that the prepaid items do not constitute "available spendable resources," even though they are a component of current assets. L Lease Receivable The City is a lessor for leases of land and recognizes leases receivable and deferred inflows of resources in the financial statements. Variable payments based on future performance or usage of the underlying asset are not included in the measurement of the lease receivable. At the commencement of a lease, the lease receivable is measured at the present value of payments expected to be received during the lease term. The City established a threshold of $100,000 for lease receivables. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method. Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. • The City uses incremental borrowing rate (IBR) provided by the financial institution or the current rate at the time a new lease is executed. • The lease term includes the noncancelable period of the lease plus any option periods that are likely to be exercised. 53 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 1— Summary of Significant Accounting Policies (Continued) L Lease Receivable (Continued) • Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee. The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. J. Capital Assets In the Government -Wide Financial Statements, capital assets are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Donated capital assets are valued at their acquisition value. Capital assets, which include land, site improvements, buildings and improvements, and equipment and infrastructure assets. General infrastructure assets consist of roads, curbs and gutters, sidewalks, medians, street signs, bus shelters, bridges, trails, traffic signals, and storm drains/catch basins. City policy has set the capitalization threshold for reporting capital assets with an initial cost of more than $25,000 for site improvements and building improvements, $100,000 for infrastructure and $10,000 for all other capital assets and an estimated useful life in excess of one year. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Capital assets are depreciated using the straight-line method over the following estimated useful lives: Assets Years Site Improvement 5-25 Building and Improvements 5-50 Equipment 5-25 Infrastructure 20-60 The governmental fund financial statements do not present capital assets. Instead, capital assets purchases are reported as capital outlay expenditures or other functional expenditures such as public works. As such, capital assets are shown as a reconciling item in the Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position. The City established a $100,000 threshold to recognize right -to -use assets, including lease assets or subscription - based information technology arrangement ("SBITA") assets ("subscription assets"), in the government -wide financial statements and proprietary fund financial statements. Ruoff -Use Lease Assets Lease assets are recorded at the amount of the initial measurement of the lease liabilities and adjusted by any lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service. Lease assets are amortized using the straight-line method over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset. 54 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 1— Summary of Significant Accounting Policies (Continued) J. Capital Assets (Continued) Riyht_of-Use Subscription Assets Subscription assets are recorded at the amount of the initial measurement of the SBITA liabilities ("subscription liabilities") and adjusted by any subscription payments to the SBITA vendor at or before the commencement of the subscription term, less any incentives received from the SBITA vendor at or before the commencement of the subscription term along with subscription implementation costs. Subscription assets are amortized over the shorter of the subscription term or the useful life of the underlying information technology assets. K. Deferred Outflows and Inflows of Resources The statement of net position reports separate sections for deferred outflows of resources and deferred inflows of resources, when applicable. Deferred Outflows of Resources represent a consumption of net assets that apply to future periods. De erred In ows of Resources represent an acquisition of net assets that apply to future periods. L. Unearned and Unavailable Revenue Unearned revenue is reported for transactions for which revenue has not yet been earned. Typical transactions recorded as unearned revenues are grant revenues received in advance. In the governmental fund financial statements, unavailable revenue is reported when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City reports unavailable revenue when an asset is reported in governmental fund financial statements but the revenue is not available. M. Long -Term Debt In the Government -Wide Financial Statements, Proprietary Fund Financial Statements, and Fiduciary Fund Financial Statements, long-term debt and other long-term obligations are reported as liabilities in the appropriate activities. Bonds payable are reported net of the applicable bond premium or discount. Debt issuance costs except for any portion related to prepaid insurance are recognized as expense in the period incurred. Premiums or discounts not considered as part of the reacquisition price are amortized over the life of the bond. The governmental fund financial statements do not present long-term debt and other financed obligations. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuances costs are reported as debt service expenditures. Principal payments and reductions in the obligation are reported as debt service expenditures. As such, long-term debt and other financed obligations are shown as reconciling items in the Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position. N. Lease Liabilities The City recognizes lease liabilities with an initial, individual value of $100,000 or more with a lease term greater than one year in the government -wide and proprietary fund financial statements. Variable payments based on future performance of the lessee or usage of the underlying asset are not included in the measurement of the lease liability. 55 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 1— Summary of Significant Accounting Policies (Continued) N. Lease Liabilities (Continued) At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. • The City uses incremental borrowing rate provided by the financial institution or the current rate at the time a new lease is executed. The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise. • Lease payments included in the measurement of the lease payable is composed of fixed payments to the lessor. The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure any lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. O. Subscription Liabilities The City recognizes subscription liabilities with an initial, individual value of $100,000 or more with a subscription term greater than one year in the government -wide and proprietary fund financial statements. Variable payments based on future performance of the City, usage of the underlying information technology assets, or number of user seats are not included in the measurement of the subscription liability. At the commencement of a subscription, the City initially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made. Key estimates and judgments related to subscription liabilities include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments. • The City uses incremental borrowing rate provided by the financial institution at July 1, 2022 for existing subscription or the current rate at the time a new subscription is executed. • The subscription term includes the noncancellable period of the SBITA. Subscription payments included in the measurement of the subscription liability are composed of fixed payments. The City monitors changes in circumstances that would require a remeasurement of its SBITA and will remeasure any subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability. 56 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 1— Summary of Significant Accounting Policies (Continued) P. Compensated Absences It is the City's policy to permit employees to accumulate earned but unused vacation (compensated absences). For proprietary fund types and governmental activities, this accumulation is recorded as an expense and liability of the appropriate fund in the fiscal year earned. For the governmental funds, the amount of accumulated unpaid vacation, which is payable from available resources, is recorded as a liability of the General Fund when it has matured (i.e. when due and payable). Q. Claims and Judgments When it is probable that a claim liability has been incurred at year-end and the amount of the loss can be reasonably estimated, the City records the estimated loss, net of any insurance coverage, under its self- insurance program. Claims payable, which includes an estimate for incurred but not reported ("IBNR') claims, is recorded in the Self - Insurance Internal Service Fund. R. Pensions For purposes ofineasuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans' fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. General Fund and special revenue funds are typically used to liquidate pension liabilities for governmental funds. The following time frames are used for pension reporting: Valuation Date June 30, 2022 Measurement Date June 30, 2023 Measurement Period July 1, 2022 to June 30, 2023 Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period. S. Other Postemployment Benefits ("OPEW) For the purpose of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City's OPEB Plan and additions to/deductions from the OPEB Plan's fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments, which are reported at amortized cost. 57 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 1— Summary of Significant Accounting Policies (Continued) S. Other Postemployment Benefits ("OPEB') (Continued) General Fund and special revenue funds are typically used to liquidate OPEB liabilities for governmental funds. The following timeframes are reported OPEB reporting: Valuation Date June 30, 2022 Measurement Date June 30, 2024 Measurement Period July 1, 2023 to June 30, 2024 Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The amortization period differs depending on the sources of gain or loss. The difference between projected and actual earnings is amortized on a straight-line basis over 5 years. All other amounts are amortized on a straight-line basis over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) at the beginning of the measurement period. T. Property Taxes and Special Assessments Property taxes and special assessment taxes are considered enforceable liens on real property on July 1, the beginning of the fiscal year, and are due in two installments on November I and February 1; however, no penalties or interest are assessed until December 10 and April 10, respectively. These taxes are determined annually based on property values, subject to limits based on Proposition 13, as of January I of the levy year, which is prior to the end of the previous fiscal year. The County of Los Angeles bills and collects these taxes for the City and are remitted on a monthly basis. Remittance of property taxes to the City is accounted for in the City's General Fund and Public Library Special Revenue Fund. Property taxes on certain registered motor vehicles are assessed and collected throughout the year. Special assessments are reported in the City's Special Assessment Special Revenue Fund. Property taxes in lieu of motor vehicle fee are the City's own -source revenues and are apportioned according to formula similar to property tax revenues. U. Net Position and Fund Balances In the Government -Wide Financial Statements and proprietary fund financial statements, net position is classified as follows: Net Investment in Capital Assets —This component of net position of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction, or improvement of those assets, and excludes unspent debt proceeds. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt also should be included in this component of net position. Restricted — This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. 58 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 1— Summary of Significant Accounting Policies (Continued) U. Net Position and Fund Balances (Continued) Unrestricted — This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position. When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City's policy is to apply the restricted component of net position first, then the unrestricted component of net position as needed. In the Governmental Fund Financial Statements, fund balances are classified as follows: Nonspendable — Items that cannot be spent because they are not in spendable form, such as prepaid items and inventories; advances, which are long-term interfund borrowings; and items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds. Restricted — Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation. Committed — Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision- making, City Council through Council Resolution, and that remain binding unless removed in the same manner. The City Council is considered the highest authority for the City. Assigned — Assigned fund balances encompass the portion of net fund resources reflecting the government's intended use of resources. Assignment of resources can be designated by the highest level of decision -making or by a committee or official designated for that purpose. The City Treasurer authorizes assigned amounts for specific purposes pursuant to the policy -making powers granted Whim through a resolution adopted by the City Council. Unassigned —This includes the excess residual amounts in the General Fund and the residual deficit of all other governmental funds, which have not been restricted, committed, or assigned to specific purposes. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. The City Council has approved an operating reserve to be used for one-time unanticipated expenditure requirements and local disaster. At June 30, 2024, the balance totaled $25,510,000, which is included in the unassigned fund balance in the General Fund. When expenditures are incurred for purposes for which all restricted, committed, assigned and unassigned fund balances are available, the City's policy is to apply in the following order, except for instances wherein an ordinance specifies the fund balance: restricted, committed, assigned, and then unassigned. 59 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 1— Summary of Significant Accounting Policies (Continued) V. Use of Estimates The preparation of the basic financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. W. Implementation of New GASB Pronouncements for the Year Ended June 30, 2024 The requirements of the following accounting standards are effective for the purpose of implementation, if applicable to the City, for the year ended June 30, 2024. The financial statements included herein apply the requirements and provisions of these statements, including necessary retroactive adjustments to financial statement classifications and presentations. GASB Statement No. 100 — In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections an Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. Implementation of this Statement resulted in restatement of beginning balance of fund balance at July 1, 2023 presented in Note 19. Note 2 — Cash and Investments The City had the following cash and investments at June 30, 2024: Cash and investments Restricted cash and investments Total cash and investments Government -Wide Fiduciary Statement of Net Position Fund Governmental Business -Type Statement of Activities Activities Net Position Total $ 482,768,992 $ 21,218,288 $ 3,393,330 $ 507,380,610 11,990,911 - 55,622,120 67,613,031 $ 494,759,903 $ 21,218,288 $ 59,015,450 $ 574,993,641 The City's cash and investments at June 30, 2024, in more detail: Deposits with financial institutions Cash on hand Total cash Investments Investments with fiscal agent Investment with PARS Total investments Total cash and investments $ 28,108,413 4.448 28.112.861 479,477,884 13,994,355 53,408,541 546.880.780 $ 574,993,641 60 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 2 — Cash and Investments (Continued) A. Deposits The carrying amounts of the City's demand deposits were $28,108,413 at June 30, 2024. Bank balances at that date were $30,439,216 the total amount of which was collateralized or insured with accounts held by the pledging financial institutions in the City's name as discussed below. Cash and Investments with PARS related to the City's OPEB Trust are disclosed in Note 14. The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name. The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City's total cash deposits. The City may waive collateral requirements for cash deposits, deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation ("FDIC"). The City did not waive the collateral requirement for deposits insured by FDIC. The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period -end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund. 61 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 2 — Cash and Investments (Continued) B. Investments The following table identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy: Authorized Investment Type Maximum Maturity Maximum Percentage Allowed * Maximum Investments in One Issuer ** City Bonds 5 years None 5% U.S. Treasuries 5 years None None State Bonds 5 years None 5% Municipal Bonds 5 years None 5% U.S. Governmental -Sponsored Enterprise securities 5 years None None Supernationals/unsubordinated Obligations 5 years 30% 10% Banker's Acceptances 180 days 40% 30% Commercial Paper 270 days 40% 5% Negotiable Certificates of Deposit 5 years 30% 5% Repurchase Agreements 1 year None None Corporate Notes 5 years 30% 5% Money Market Funds 5 years 20% 10% Mortgage Pass -Through Securities 5 years 20% 5% Asset Backed/Mortgage Backed Securities 5 years 20% 5% State of California Local Agency Investment Fund (LAIF) N/A Maximum permitted None by Law Los Angeles County Pooled Investment Fund (LACPIF) N/A None None Local Government Investment Pool (LGIP) N/A None None N/A - Not Applicable * Excluding amounts held by bond trustees that are subject to California Government Code restriction. * * Banker's acceptances may have no more than 30 percent in any one commercial bank, commercial paper may not represent more than 10 percent of the City's surplus funds for any single issuer, and money market funds may have no more than 10 percent invested in any one mutual fund. 62 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 2 — Cash and Investments (Continued) C. Investments Authorized by Debt Agreements Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by bond trustees. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk. Authorized Investment Type U.S. Treasury Obligations U.S. Government -Sponsored Enterprise Securities Money Market Funds State of California Local Agency Investment Fund (LAIF) D. Risk Disclosures Maximum Maximum Maximum Percentage Investments in Maturity Allowed One Issuer N/A 50% None 5 years None None 5 years None None 5 years 30% None Interest Rate Risk - As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment policy limits investments to a maximum maturity of five years. At June 30, 2024, the City had the following investment maturities: Investment Type 12 Months or Less Remaining Maturity (In Months) 13-24 25-60 Months Months Total Local Agency Investment Fund (LAIF) $ 5,646,155 $ - $ - $ 5,646,155 California Asset Management Program (CAMP) 56,331,764 - - 56,331,764 Los Angeles County Pooled Investment Fund (LACPIF) 2,565,361 - - 2,565,361 Money Market Funds 219,296 - - 219,296 United States Government Sponsored Enterprise Securities 17,886,748 10,593,494 - 28,480,242 US Treasuries Securities 11,783,417 80,794,184 113,250,492 205,828,093 Collateralized Mortgage Obligation - - 69,735,401 69,735,401 Asset Backed Securities - 250,093 3,307,011 3,557,104 Corporate Notes 2,915,562 16,548,746 82,932,436 102,396,744 Negotiable Certificates of Deposit 2,729,891 - - 2,729,891 Municipal Bonds 1,625,861 361,973 - 1,987,834 Investment with PARS 1,854,923 594,024 50,959,593 53,408,540 Restricted with Fiscal Agent: Money Market Funds 5,441,319 - - 5,441,319 US Treasuries Securities 8,553,036 - - 8,553,036 Total $ 117,553,333 $ 109,142,514 $ 320,184,933 $ 546,880,780 63 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 2 — Cash and Investments (Continued) D. Risk Disclosures (Continued) Credit Risk Generally, Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating, by Standard and Poor's and Moody's at June 30, 2024 for each investment type: Investment Type Fair Value at June 30, 2024 Local Agency Investment Fund (LAIF) $ 5,646,155 California Asset Management Program (CAMP) 56,331,764 Los Angeles County Pooled Investment Fund (LACPIF) 2,565,361 Money Market Funds 219,296 United States Government Sponsored Enterprise Securities 28,480,242 US Treasuries Securities 205,828,093 Collateralized Mortgage Obligation 69,735,401 Asset Backed Securities 3,557,104 Corporate Notes 102,396,744 Negotiable Certificates of Deposit 2,729,891 Municipal Bonds 1,987,834 Supranational Obligations - Investment with PARS 53,408,540 Restricted with Fiscal Agent: Money Market Funds 5,441,319 US Treasuries Securities 8,553,036 Total $ 546,880,780 N/A - Not Required Minimum Not Required Legal to be Rating AAA Others Not Rated Rated N/A $ $ $ $ 5,646,155 N/A 56,331,764 N/A 2,565,361 AAA 219,296 - N/A 28,480,242 N/A 205,828,093 AA 69,735,401 AA- 3,557,104 - - A- 20,919,116 81,134,722 342,906 N/A - 2,729,891 - A 1,091,229 896,605 AA- - - - - N/A 4,047,799 3,340,953 6,525,757 39,494,031 N/A - - - 5,441,319 N/A 1,766,396 - - 6,786,640 $ 335,644,676 $ 88,102,171 $ 6,868,663 $116,265,270 The actual rating for the "Others" Category above as follows: Investment Type Corporate Notes Negotiable Certificates of Deposit Municipal Bonds Investment with PARS Total AA A BBB Total $ 13,233,583 $ 66,553,095 $ 1,348,044 $ 81,134,722 2,729,891 - - 2,729,891 896,605 - - 896,605 414,655 1,345,932 1,580,366 3,340,953 $17,274,734 $67,899,027 $ 2,928,410 $88,102,171 Concentration of Credit Risk — The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. At June 30, 2024, the following investment represent 5% or more of total City investments: Issuers Investment Type Amount Percentage Federal National Mortgage Association US Government Sponsored Enterprise Securities $ 27,889,139 6% Federal Home Loan Mortgage Corporation Collateralized Mortgage Obligation $ 70,326,504 15% 64 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 2 — Cash and Investments (Continued) D. Risk Disclosures (Continued) Custodial Credit Risk — The Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of a third parry. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of the third parry. At June 30, 2024, none of the City's deposits or investments were exposed to custodial credit risk. E. Fair Value Measurement At June 30, 2024, investments are reported at fair value. The following table presents the fair value measurements of investments on a recurring basis and the levels with GASB 72 fair value hierarchy in which the fair value measurements fall at June 30, 2024: Quoted Prices in Active Market for Identical Investment Type Assets (Level 1) Measurement Input Significant Other Observable Inputs (Level 2) Uncategorized Total Local Agency Investment Fund (LAIF) $ $ $ 5,646,155 $ 5,646,155 California Asset Management Program (CAMP) 56,331,764 56,331,764 Los Angeles County Pooled Investment Fund (LACPIF) 2,565,361 2,565,361 Money Market Funds 219,296 219,296 United States Government Sponsored Enterprise Securities 28,480,242 - 28,480,242 US Treasury Securities 205,828,093 - 205,828,093 Collateralized Mortgage Obligation - 69,735,401 69,735,401 Asset Backed Securities 3,557,104 3,557,104 Corporate Notes 102,396,744 102,396,744 Negotiable Certificates of Deposit 2,729,891 2,729,891 Municipal Bonds 1,987,834 1,987,834 Sup ernational Obligations - - Investment with PARS 53,408,540 - 53,408,540 Restricted with Fiscal Agent: Money Market Funds - - 5,441,319 5,441,319 US Treasury Securities 8,553,036 - - 8,553,036 Total $ 214,381,129 $ 262,295,756 $ 70,203,895 $ 546,880,780 Deposits and withdrawals related to the investments in LAIF, LACPIF, CAMP, and money market funds are valued on amortized cost, which approximates fair value. Accordingly, under the fair value hierarchy these investments are uncategorized. Level 2 investments are based on institutional bond quotes or matrix pricing. 65 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 2 — Cash and Investments (Continued) F. Local Agency Investment Fund ("LAIF') The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. As of June 30, 2024, the City had $5,646,155 invested in LAIF. The fair value of the City's portion in the pool is the same as the value of the pool shares and is reported at amortized cost. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. G. Los Angeles County Pooled Investment Fund ("LACPIF') The LACPIF is a pooled investment fund program governed by the Los Angeles County Board of Supervisors and administered by the Los Angeles County Treasurer and Tax Collector. Investments in the LACPIF are highly liquid, as deposits and withdrawals can be made at any time without penalty. The LACPIF does not impose any maximum investment limit. The balance available for withdrawal is based on the accounting records maintained by the LACPIF, which is reported at amortized cost. As of June 30, 2024, the City had $2,565,361 invested in the LACPIF. IL California Asset Management Program ("CAMP') The City is a voluntary participant in a CAMP, a Joint Powers Authority ("JPA") investment pool, which is a permitted investment under California Government Code 53601(p). CAMP is directed by a Board of Trustees, which is made up of experienced local government finance directors and treasurers. As of June 30, 2024, the City had $56,331,764 invested in the CAMP. Note 3 — Accounts Receivables Accounts receivable as of June 30, 2024, including allowances for uncollectible accounts, is as follows: Sp ecial Revenue Funds Nonmajor Transit Internal General Landscape Governmental Enterprise Service Fund Maintenance Funds Fund Fund Gross receivables $ 622,714 $ 13,322 $ 348,127 $ 12,666 $ 26,413 Less: Allowance of uncollectibles (169,064) - (183,396) - - Account receivables, net $ 453,650 $ 13,322 $ 164,731 $ 12,666 $ 26,413 Note 4 — Loans Receivable The loans receivable balance in the governmental funds totaled $1,833,632 at June 30, 2024. The balance is related to deferred -payment rehabilitation loans to qualified homeowners in connection with HOME rehabilitation programs. 66 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 5 — Due from the Successor Agency Pursuant to Health and Safety Code section 34167.5, in February 2015, the State Controller's Office ("SCO") reviewed all asset transfers made by the former RDA to the City after January 1, 2011. As a result of this review, the SCO concluded that assets transferred after January 1, 2011, included unallowable transfers to the City totaling $14,628,194. In subsequent actions, the City returned property valued at $763,436 to the Successor Agency, leaving $13,864,758 in unallowable transfers to be returned by the City to the Successor Agency as of February 2015. The City has transferred certain assets to the Successor Agency. As of June 30, 2024, $7,734,479 of these unallowable transfers remains due from the City to the Successor Agency Private Purpose Trust Fund. Note 6 — Notes to RDA Successor Agency Prior to the dissolution of the former redevelopment agency, the General Fund and Developer Fees Special Revenue Fund advanced the former redevelopment agency funding for various redevelopment activities. These advances were made in the form of promissory notes and were transferred to the RDA Successor Agency upon dissolution. During the fiscal year ended June 30, 2015, the California Department of Finance ("DOF") approved final loan amounts from the General Fund and Developer Fees Special Revenue Fund to the former redevelopment agency for $7,225,964 and $5,407,868, respectively, using a LAIF rate of 0.26 percent, which was in effect when the Oversight Board reinstated the loans on February 25, 2015. On September 22, 2015, the Committee on Budget and Fiscal Review of the California State Senate approved SB 107. A mandate of this legislation included a recalculation of the notes to the RDA Successor Agency using a 3 percent simple interest from the origination of the note, instead of the LAIF rate. From the fiscal year ended June 30, 2016 and thereafter, the loan amounts will increase by the 3 percent interest only. As of June 30, 2024, the loan amounts reported in the General Fund and Developer Fees Special Revenue Fund was $3,637,610 and $5,319,887, respectively. In addition, the unpaid accrued interests of these notes are $3,713,229 and $2,389,151, respectively, which are included in the note balance. Note 7 — Lease Receivables Lease receivable consists of agreements with lessees of the City for the right —to —use of the underlying assets for land owned by the City at various location. The remaining terms of the agreements range from 7 to 20 years. The incremental borrowing rates used was 0.165%. For the year ended June 30, 2024, the City recognized $381,784 in lease revenue and $16,462 in lease interest revenue for General Fund. The outstanding lease receivable is in the amount of $5,211,910 for General Fund. The future receipts for these leases, including interest, are as follows: Year Ending June 30, Principal Interest Total 2025 $ 437,116 $ 16,285 $ 453,401 2026 445,636 15,081 460,717 2027 454,404 13,854 468,258 2028 463,429 12,604 476,033 2029 435,190 11,359 446,549 2029-2033 1,949,108 38,702 1,987,810 2034-2038 848,684 12,514 861,198 2039-2042 178,343 1,004 179,347 Total $ 5,211,910 $ 121,403 $ 5,333,313 67 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 8 — Interfund Transactions A. Due From/To Other Funds At June 30, 2024, the City had the following due from/to other funds: Due from Other fund Due to Other Funds: General Fund Nonmajor Governmental Funds $ 4,963,420 The above amounts resulted from temporary reclassifications made at June 30, 2024 to cover cash shortfalls. B. Advances To/From Other Funds At June 30, 2024, the City had the following advances: Advances to Other Funds Advances from Other Funds General Fund Bridge and Thoroughfare $ 595,046 Bridge and Thoroughfare In January 2017, the General Fund advanced the Bridge and Thoroughfare Special Revenue Fund $3,500,000 for the widening of the Newhall Ranch Road Bridge over the San Francisquito Creek (Project S1039). The advance accrues interest at a rate equal to the yield of the average monthly investment portfolio and will be repaid with future available resources of the Bridge and Thoroughfare Special Revenue Fund. The payments are payable in separate annual installments over an eight -year period beginning January 2017 and ending June 2025. At June 30, 2024, the amount of the advance outstanding is $595,046. C. Transfers In/Out During the year ended June 30, 2024, the City had the following transfers in/out: Transfers in Governmental Funds Nonmajor General Governmental Transfers out Fund Funds Total General Fund $ - $ 20,909,335 $ 20,909,335 Landscape Maintenance District #1 30,000 17,000 47,000 Nonmajor Governmental Funds 3,283,778 2,371,354 5,655,132 Transit Enterprise Fund 150,000 104,834 254,834 Total $ 3,463,778 $ 23,402,523 $ 26,866,301 68 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 8 — Interfund Transactions (Continued) C. Transfers In/Out (Continued) The General Fund made transfers of $20,909,335 to the nonmajor governmental funds for the following: • Areawide Special Revenue Fund for $13,432,883 to provide for urban forestry and parks and parks facilities maintenance. • Public Financing Authority Debt Service Fund for debt service payments for the 2016 Lease Revenue Bonds, Series A (Golden Valley Road), 2019 Lease Revenue Bonds (Sheriff Station), 2020 Lease Revenue Bonds, Series A (Recreational Facility), 2020 Lease Revenue Bonds, Series A-T (Recreational Facility) and 2022 Lease Revenue Bonds, Series A and Series B (Energy Efficiency), in the amount of $4,238,691. • General Capital Projects funds for capital improvement projects for $2,372,894. • Proposition A Special Revenue Fund for $693,220 as reimbursement for Vista Canyon Metrolink Station from bond proceeds balance. • Housing Successor Agency Special Revenue Fund for $160,747 as its 20% portion of the Successor Agency loan repayment. • Surface Transportation Program Special Revenue Fund for $10,900 as reimbursement to ineligible overlay project in prior year. The nonmajor governmental funds made transfers of $3,283,778 to the General Fund mainly for the following: • Library Facilities Fees Special Revenue Fund for $1,544,866 as reimbursement to library expenses. • Developer Fees Special Revenue Fund for $1,042,563 as reimbursement for OTN Parking Structure and Sheriffs Station, and 5% of Fire District fees for admin charge. • Traffic Safety Special Revenue Fund for $485,796 to fund traffic deputies as the budget is part of the sheriff s contract. Transfers within the nonmajor governmental funds are mainly for debt service payments for the 2016 Lease Revenue Refunding Bonds, Series B (OSPD), the 2018 Lease Revenue Bonds, Series A (Streetlights) and 2018 Taxable Lease Revenue Bonds, Series B (Streetlights), in the amount of $1,674,352. 69 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 9 — Capital Assets A. Governmental Activities A summary of changes in the capital assets for the governmental activities for the year ended June 30, 2024 is as follows: Capital assets, not being depreciated: Land Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Site improvements Building improvements Equipment Infrastructure Total capital assets, being depreciated Less accumulated depreciation for: Site improvements Building improvements Equipment Infrastructure Total accumulated depreciation Total capital assets, being depreciated, net Intangible assets, being amortized: Right -to -use leased building Right -to -use leased equipment Right -to -use leased infrastructure Right -to -use subscription assets Total intangible assets, being amortized Less accumulated amortization for: Right -to -use leased building Right -to -use leased equipment Right -to -use leased infrastructure Right -to -use subscription assets Total accumulated amortization Total intangible assets, being amortized, net Governmental activities capital assets, net Balance Balance July 1, 2023 Transfers Additions Deletions June 30, 2024 $ 260,562,680 $ - $ 3,453,965 $ - $ 264,016,645 55,464,586 (26,271,073) 34,325,437 (10,479,877) 53,039,073 316,027,266 (26,271,073) 37,779,402 (10,479,877) 317,055,718 83,608,751 26,271,073 - (35,734) 109,844,090 211,037,844 - 30,580,626 (61,398) 241,557,072 16,389,426 - 1,329,822 (1,731,229) 15,988,019 1,112,690,985 - 12,481,909 (122,613) 1,125,050,281 1,423,727,006 26,271,073 44,392,357 (1,950,974) 1,492,439,462 (31,709,279) - (3,786,540) 478,147 (35,017,672) (35,133,284) - (5,952,862) 58,175 (41,027,971) (11,362,462) - (1,055,482) 1,382,004 (11,035,940) (467,027,769) - (22,660,450) 960,565 (488,727,654) (545,232,794) - (33,455,334) 2,878,891 (575,809,237) 878,494,212 26,271,073 10,937,023 927,917 916,630,225 580,966 - 175,306 - 756,272 346,668 - - - 346,668 275,110 - - - 275,110 3,614,088 - 309,454 - 3,923,542 4,816,832 - 484,760 - 5,301,592 (296,249) - (160,098) - (456,347) (231,789) - (114,879) - (346,668) (137,938) - (68,969) - (206,907) (716,332) - (768,388) - (1,484,720) (1,382,308) - (1,112,334) - (2,494,642) 3,434,524 - (627,574) - 2,806,950 $ 1,197,956,002 $ - $ 48,088,851 $ (9,551,960) $ 1,236,492,893 70 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 9 — Capital Assets (Continued) A. Governmental Activities (Continued) Depreciation and amortization expense was charged to functions of the governmental activities for the year ended June 30, 2024 as follows: General government $ 2,872,050 Public safety 1,984,092 Recreation and community service 4,621,082 Neighborhood services 1,049,046 Public works 1,020,478 Community development 13,503 Internal service funds depreciation 346,967 Allocated depreciation 11,907,218 Unallocated infrastructure depreciation 22,660,450 Total depreciation expense - governmental activities $ 34,567,668 B. Business -Type Activities A summary of changes in the capital assets for the business -type activities for the year ended June 30, 2024 is as follows: Capital assets, not being depreciated: Land Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Site improvements Building improvements Equipment Total capital assets, being depreciated Less accumulated depreciation for: Site improvements Building improvements Equipment Total accumulated depreciation Total capital assets, being depreciated, net Business -type activities capital assets, net Balance Balance July 1, 2023 Transfers Additions Deletions June 30, 2024 $ 15,087,880 $ - $ - $ - $ 15,087,880 15,933,925 (8,419,966) 222,321 (7,503,190) 233,090 31,021,805 (8,419,966) 222,321 (7,503,190) 15,320,970 12,941,276 8,419,966 21,361,242 46,682,437 - - (6,800) 46,675,637 69,093,703 - 2,296,279 (621,801) 70,768,181 128,717,416 8,419,966 2,296,279 (628,601) 138,805,060 (6,672,916) (880,295) 179,072 (7,374,139) (17,429,823) (1,024,103) (7,277) (18,461,203) (38,943,791) (4,828,827) 16,275 (43,756,343) (63,046,530) (6,733,225) 188,070 (69,591,685) 65,670,886 8,419,966 (4,436,946) (440,531) 69,213,375 $ 96,692,691 $ - $ (4,214,625) $ (7,943,721) $ 84,534,345 Depreciation expense in the amount of $6,733,225 was charged to Transit function of the business -type activities for the year ended June 30, 2024. 71 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 10 — Deposit Payable The City collects deposits for a) improvements within the City, b) donations received for specified services, and c) deposits received in advance for recreation programs or other department services. These balances represent amounts that have been collected for which the eligibility requirements for revenue recognition have not been met. As of June 30, 2024, deposits payable were as follows: General Fund: Deposits from developers Other deposits payable Total deposits payable Note 11— Long -Term Liabilities A. Governmental Activities $ 3,679,182 1,237,947 $ 4,917,129 A summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2024 is as follows: Balance Balance Due within Due in More July 1, 2023 Additions Deletions June 30, 2024 One Year Than One Year Governmental Activities: Lease Revenue Bonds Series 2016A (Golden Valley Road) $ 7,480,000 $ $ (470,000) $ 7,010,000 $ 490,000 $ 6,520,000 Series 2016B (OSPD) 11,575,000 (485,000) 11,090,000 525,000 10,565,000 Series 2019 (Sheriff Station) 24,815,000 (555,000) 24,260,000 585,000 23,675,000 Series 2020A (Recreational Facility) 10,645,000 10,645,000 - 10,645,000 Series 2020A-T (Recreational Facility) 2,435,000 (355,000) 2,080,000 360,000 1,720,000 Series 2022A (Energy Efficiency) 12,395,000 (230,000) 12,165,000 245,000 11,920,000 Series 2022B (Energy Efficiency) 5,970,000 (330,000) 5,640,000 350,000 5,290,000 Issuance premium and discount 3,438,621 (190,297) 3,248,324 190,297 3,058,027 Subtotal 78,753,621 (2,615,297) 76,138,324 2,745,297 73,393,027 Revenue and Taxable Revenue Bonds Series 2018A (Streetlights) 11,295,000 11,295,000 - 11,295,000 Series 2018B (Streetlights) 2,050,000 (330,000) 1,720,000 340,000 1,380,000 Issuance premium and discount 454,814 (15,969) 438,845 15,969 422,876 Subtotal 13,799,814 (345,969) 13,453,845 355,969 13,097,876 Financed purchase notes payable 97,376 (33,158) 64,218 34,464 29,754 Lease liabilities 544,549 175,305 (350,213) 369,641 222,045 147,596 Subscription liabilities 2,843,206 309,454 (759,058) 2,393,602 563,381 1,830,221 Total bonds and notes payable, lease and subscription liabilities 96,038,566 484,759 (4,103,695) 92,419,630 3,921,156 88,498,474 Compensated absences 4,718,161 3,267,634 (2,967,937) 5,017,858 2,967,937 2,049,921 Claims and judgments 7,440,596 4,349,500 (2,212,790) 9,577,306 1,591,000 7,986,306 Total governmental activities $ 108,197,323 $ 8,101,893 $ (9,284,422) $ 107,014,794 $ 8,480,093 $ 98,534,701 72 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 11- Long -Term Liabilities (Continued) A. Governmental Activities (Continued) The City has outstanding bonds and notes from direct borrowings and lease/subscription payable related to governmental activities totaling $89,656,387 and $2,763,243, respectively. The City has pledged assessment revenues to pay for the debt service for the lease revenue, revenue and taxable revenue bonds related to government - type activities. All outstanding bonds contain an event of default that changes the timing of repayment of outstanding amounts to become immediately due if the City is unable to make payment. Lease Revenue Bonds, Series 2016 A (Golden Valley Road) and 2016E (OSPD) In June 2016, the Authority issued Lease Revenue Refunding Bonds, Series 2016A (Golden Valley Road) and Series 2016B (Open Space Preservation District), in the amount of $10,320,000 and $14,020,000, respectively. Interest on the Refunding Lease Revenue Bonds, Series 2016A, is paid as part of a variable rate between 2 percent and 4 percent payable on June 1 and December 1 of each year commencing on December 1, 2016. Interest on the Refunding Lease Revenue Bonds, Series 2016B, is paid as part of a variable rate between 2 percent and 4 percent payable on April 1 and October 1 of each year commencing on October 1, 2016. Principal payments are due annually in various amounts commencing December 1, 2016, through December 1, 2035, for Series 2016A, and October 1, 2016, through October 1, 2037, for Series 2016B. The unpaid balances as of June 30, 2024, were $7,010,000 for Series 2016A and $11,090,000 for Series 2016B. The Open Space Preservation District (OSPD) special assessment revenues within the OSPD Fund have been pledged as an available source of repayment for the bonds. The future annual debt service requirements for the Lease Revenue Bonds, Series 2016A are as followed: Year Ending June 30, Principal Interest Total 2025 $ 490,000 $ 206,900 $ 696,900 2026 510,000 186,900 696,900 2027 530,000 166,100 696,100 2028 550,000 150,000 700,000 2029 555,000 138,950 693,950 2030-2034 3,020,000 463,275 3,483,275 2035-2036 1,355,000 40,875 1,395,875 Total $ 7,010,000 $ 1,353,000 $ 8,363,000 The future annual debt service requirements for the Lease Revenue Bonds, Series 2016B are as followed: Year Ending June 30, Principal Interest Total 2025 $ 525,000 $ 319,806 $ 844,806 2026 565,000 298,006 863,006 2027 610,000 274,506 884,506 2028 655,000 255,756 910,756 2029 690,000 242,306 932,306 2030-2034 3,985,000 961,178 4,946,178 2035-2038 4,060,000 256,225 4,316,225 Total $ 11,090,000 $ 2,607,783 $ 13,697,783 73 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 11— Long -Term Liabilities (Continued) A. Governmental Activities (Continued) Lease Revenue Bonds, Series 2019 (Sheriff Station) In June 2019, the Authority issued Lease Revenue Bonds, Series 2019 (Sheriff Station Project) in the amount of $25,850,000. The City will lease certain real property in conjunction with the Sheriff Station project, and receive rental payments, which are pledged for repayment of the bonds. Interest on the Lease Revenue Bonds, Series 2019, is paid as part of a variable rate between 4 percent and 5 percent payable on June 1 and December 1 of each year commencing on December 1, 2019. Principal payments are due annually in various amounts commencing December 1, 2022, through June 1, 2049. The unpaid balance as of June 30, 2024, was $24,260,000. The bonds maturing on or after June 1, 2028 are subject to redemption prior to their respective maturity dates as a whole or in part on any date on or after June 1, 2027 at a redemption price equal to the principal amount of the Bonds to be redeemed, plus accrued but unpaid interest, without premium. Further, the bonds are subject to redemption prior to their respective maturity dates, as a whole or in part on a pro rata basis if the City takes the leased property or any portion by power of eminent domain, or from insurance proceeds due to destruction of the leased property, at a redemption price equal to the sum of the principal of the bonds to be redeemed plus accrued by unpaid interest, without premium. The term bonds maturing on June 1, 2037 are subject to mandatory redemption by sinking account payments of $940,000 and $970,000 on June 1, 2036 and June 1, 2037, respectively. The future annual debt service requirements for the Lease Revenue Bonds, Series 2019, are as followed: Year Ending June 30, Principal Interest Total 2025 $ 585,000 $ 845,063 1,430,063 2026 610,000 815,813 1,425,813 2027 645,000 785,313 1,430,313 2028 675,000 753,063 1,428,063 2029 710,000 719,313 1,429,313 2030-2034 4,030,000 3,109,063 7,139,063 2035-2039 4,845,000 2,295,463 7,140,463 2040-2044 5,630,000 1,513,463 7,143,463 2045-2049 6,530,000 614,781 7,144,781 Total $ 24,260,000 $ 11,451,335 $ 35,711,335 74 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 11- Long -Term Liabilities (Continued) A. Governmental Activities (Continued) Lease Revenue and Taxable Revenue Bonds. Series 2020A and 202OA-T (Recreational Facili In October 2020, the Santa Clarita Public Financing Authority issued Lease Revenue Bonds Series 2020A and Taxable Lease Revenue Bonds Series 202OA-T (Recreational Facility), in the amount of $10,645,000 and $3,625,000 respectively. Interest on the bonds is paid as part of a fixed rate between 0.45% and 4.00% payable on December I and June I of each year commencing on December 1, 2020. Principal payments are due annually in various amounts commencing June 1, 2030 through June 1, 2050 for Series 2020A and June 1, 2021 through June 1, 2030 for Series 2020A-T. Net bond proceeds in the amount of $14,200,000 were used to reimburse the City in October 2020 for its acquisition of an approximately 4.4 acre parcel and 93,000 square foot recreational facility located at 27745 Smyth Drive within the City. The total unpaid balance as of June 30, 2024, was $12,725,000. The bonds are payable solely from and secured by revenues pledge, including base rental payments payable to the City, bond proceeds, investment income, or insurance procedures or condemnation awards received or payable relating to base rental payments. The future annual debt service requirements for the Lease Revenue Bonds, Series 2020A are listed below: Year Ending June 30, Principal Interest Total 2025 $ - $ 312,206 $ 312,206 2026 - 312,206 312,206 2027 - 312,206 312,206 2028 - 312,206 312,206 2029 - 312,206 312,206 2030-2034 1,840,000 1,465,231 3,305,231 2035-2039 2,325,000 1,219,038 3,544,038 2040-2044 2,635,000 903,850 3,538,850 2045-2049 3,155,000 383,638 3,538,638 2050 690,000 18,975 708,975 Total $ 10,645,000 $ 5,551,762 $ 16,196,762 The future annual debt service requirements for the Taxable Revenue Bonds, Series 202OA-T are as followed: Year Ending June 30, Principal Interest Total 2025 $ 360,000 $ 36,113 $ 396,113 2026 365,000 31,879 396,879 2027 370,000 26,452 396,452 2028 375,000 20,210 395,210 2029 385,000 12,834 397,834 2030 225,000 4,876 229,876 Total $ 2,080,000 $ 132,364 $ 2,212,364 75 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 11- Long -Term Liabilities (Continued) A. Governmental Activities (Continued) Lease Revenue and Revenue Bonds. Series 2022A and 2022E (Energy Efficiencv Program On October 1, 2022, the Financing Authority issued $12,845,000 Lease Revenue Bonds (Energy Efficiency Program), Series A (Green Bonds) and $5,970,000 Lease Revenue Bonds (Energy Efficiency Program), Series B (Green Bonds). Interest on the Bonds will be payable semiannually on June 1 and December 1 of each year, commencing June 1, 2023 and at rate range from 4.375% to 5.000% annum. Principal on the Series A bonds commences on June 1, 2023 and matures on June 1, 2050. Principal on the Series B bonds commences on December 1, 2023 and matures on December 1, 2035. Proceeds of the bonds will be used to finance energy efficiency improvements associated with buildings and facilities such as heating, ventilation, and air conditioning, lighting, water conservation, solar, and refrigeration improvements (the "2022 Project"), and to pay the costs of issuing the bonds. The total unpaid balance as of June 30, 2024, was $17,805,000. The bonds are payable solely from and secured by revenues pledge, including base rental payments payable to the City, bond proceeds, investment income, or insurance procedures or condemnation awards received or payable relating to base rental payments. The future annual debt service requirements for the Lease Revenue Bonds, Series 2022A are listed below: Year Ending June 30, Principal Interest Total 2025 $ 245,000 $ 566,550 $ 811,550 2026 255,000 554,300 809,300 2027 270,000 541,550 811,550 2028 280,000 528,050 808,050 2029 295,000 514,050 809,050 2030-2034 1,720,000 2,332,750 4,052,750 2035-2039 2,190,000 1,860,875 4,050,875 2040-2044 2,730,000 1,317,925 4,047,925 2045-2049 3,400,000 648,000 4,048,000 2050 780,000 35,100 815,100 Total $ 12,165,000 $ 8,899,150 $ 21,064,150 The future annual debt service requirements for the Lease Revenue Bonds, Series 2022B are as followed: Year Ending June 30, Principal Interest Total 2025 $ 350,000 $ 273,250 $ 623,250 2026 370,000 255,250 625,250 2027 390,000 236,250 626,250 2028 410,000 216,250 626,250 2028 425,000 195,375 620,375 2030-2034 2,505,000 623,125 3,128,125 2035-2036 1,190,000 60,250 1,250,250 Total $ 5,640,000 $ 1,859,750 $ 7,499,750 76 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 11— Long -Term Liabilities (Continued) A. Governmental Activities (Continued) Revenue and Tax Revenue Bonds, Series 2018 A and 2018E (Streetli ht�quisition and Retrofit Program) In June 2018, the Authority issued 2018 Revenue Bonds Series A and 2018 Taxable Revenue Bonds Series B, in the amount of $11,295,000 and $4,005,000, respectively. Interest on the 2018 Revenue Bonds Series A, is paid as part of a variable rate between 3 percent and 5 percent payable on September 1 and March 1 of each year commencing on September 1, 2018. Principal payments are due annually in various amounts commencing September 1, 2018 through September 1, 2048, for the Series A bonds. The unpaid balance as of June 30, 2024, was $11,295,000. Interest on the 2018 Taxable Revenue Bonds Series B, is paid as part of a variable rate between 2.150 percent and 3.750 percent payable on September 1 and March 1 of each year commencing on September 1, 2018. Principal payments are due annually in various amounts commencing September 1, 2018 through September 1, 2028, for the Series B bonds. The unpaid balance as of June 30, 2024, was $1,720,000. The bonds are payable from and secured by a pledge of and first lien on amounts on deposit in the Streetlighting fund, including assessment revenues and Ad -valorem revenues. The future annual debt service requirements for the Revenue Bonds, Series 2018A are as followed: Year Ending June 30, Principal Interest Total 2025 $ $ 465,394 $ 465,394 2026 465,394 465,394 2027 465,394 465,394 2028 465,394 465,394 2029 100,000 462,894 562,894 2030-2034 2,215,000 2,073,438 4,288,438 2035-2039 2,630,000 1,663,291 4,293,291 2040-2044 3,205,000 1,045,125 4,250,125 2045-2047 3,145,000 257,900 3,402,900 Total $ 11,295,000 $ 7,364,224 $ 18,659,224 The future annual debt service requirements for the 2018 Taxable Revenue Bonds Series B are as follows: Year Ending June 30, Principal Interest Total 2025 $ 340,000 $ 54,581 $ 394,581 2026 350,000 43,150 393,150 2027 365,000 30,856 395,856 2028 375,000 17,672 392,672 2029 290,000 5,438 295,438 Total $ 1,720,000 $ 151,697 $ 1,871,697 77 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 11— Long -Term Liabilities (Continued) A. Governmental Activities (Continued) Finance Purchase Notes Pal able On April 27, 2021, the City Council approved a finance -purchase agreement with Zamboni Company, USA Inc. for Zamboni Equipment at the Cube — Ice and Entertainment Center (The Cube) in the amount of $164,970. The agreement has 60 monthly payments of $3,029 with an interest rate of 3.87 percent. The final payment is due April 29, 2026. The future annual debt service requirements are as follows: Year Ending June 30, Principal Interest Total 2025 $ 34,464 $ 1,878 $ 36,342 2026 29,754 531 30,285 Total $ 64,218 $ 2,409 $ 66,627 Lease Liabilities On June 11, 2019, the City Council approved a lease agreement with Kyocera Document Solutions West, LLC for Citywide printers and copiers in the amount of $497,730. The lease agreement has 60 monthly payments of $8,944 with an interest rate of 3 percent. The final payment is due July 1, 2024. The lease was assigned by Kyocera Document Solutions West, LLC. On June 27, 2019, the City entered into lease agreement with Crown Castle Fiber, LLC for lease of dark fiber. The agreement ends on June 26, 2025. The agreement has monthly payments of $5,750 with interest rate of 0.165 percent. The Television Authority has entered into a lease for office space that commenced in September 2016 and expires on September 30, 2023. The term of the agreements was for 84 months with an interest rate of 0.165 percent. The lease was extended to March 31, 2025. The lease was remeasured instead of treating it as a new lease. The future annual lease payments are as follows: Year Ending June 30, Principal Interest Total 2025 $ 222,045 $ 671 $ 222,716 2026 98,327 292 98,619 2027 49,269 41 49,310 Total $ 369,641 $ 1,004 $ 370,645 Lastly, the City entered into an office building lease for the property known as the MAIN, in December 23, 2020 that expired on December 31, 2023. The agreement has monthly payments of $6,400 with interest rate of 0.165 percent. The lease was extended to December 31, 2026. The lease was remeasured instead of treating it as a new lease. 78 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 11— Long -Term Liabilities (Continued) A. Governmental Activities (Continued) Subscription Liabilities The City entered into subscription agreements with various vendors for software. The agreements expire from March 12, 2025 to June 30, 2030 with interest rates range from 1.58 percent to 2.65 percent. The future subscription payments are as follows: Year Ending June 30, Principal Interest Total 2025 $ 563,381 $ 58,703 $ 622,084 2026 343,944 45,528 389,472 2027 362,821 37,055 399,876 2028 382,482 28,109 410,591 2029 360,264 18,673 378,937 2030 380,710 9,594 390,304 Total $ 2,393,602 $ 197,662 $ 2,591,264 Compensated Absences The balance at June 30, 2024, was $5,017,858. The General Fund is used to liquidate the compensated absences for governmental activities. Claims and Jud moments The balance at June 30, 2024, was $9,577,306. See Note 12 for more details. B. Business -Type Activities Balance Balance Due within Due in More July 1, 2023 Additions Deletions June 30, 2024 One Year Than One Year Business -type activities Compensated absences $ 136,656 $ 67,373 $ (85,710) $ 118,319 $ 85,710 $ 32,609 The Transit Enterprise Fund is used to liquidate the compensated absences for business -type activities. 79 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 11— Long -Term Liabilities (Continued) C. Fiduciary Funds The following Successor Agency long-term obligations were approved by California State Department of Finance as enforceable obligations and were considered as accounting liabilities in accordance with GAAP. Balance Balance Due within Due in More July 1, 2023 Additions Deletions June 30, 2024 One Year Than One Year Fiduciary Activities: RDA Successor Agency: Loans from the City of Santa Clarita $ 15,594,886 $ 268,725 $ (803,734) $ 15,059,877 $ - $ 15,059,877 Tax Allocation Bonds: Refunding Series 2017 Unamortized Bond discounts Total fiduciary activities 29,680,000 645,907 (985,000) 28,695,000 1,030,000 27,665,000 (33,660) 612,247 33,660 578,587 $ 45,920,793 $ 268,725 $ (1,822,394) $ 44,367,124 $ 1,063,660 $ 43,303,464 Loans from the Cib� of Santa Clarity At June 30, 2015, the California Department of Finance ("DOF") approved the advances to the former redevelopment agency consisting of the promissory notes outstanding between the City and the former redevelopment agency entered into between the periods of July 1996 and June 2010. These consist of notes outstanding from the General Fund and the Developer Fees Special Revenue Fund in the amounts of $7,225,964 and $5,407,868, respectively using a LAIF rate of 0.26 percent, which was in effect when the Oversight Board reinstated the loans on February 25, 2015. On September 22, 2015, the Committee on Budget and Fiscal Review of the California State Senate approved SB 107. A mandate of this legislation included a recalculation of the notes to the RDA Successor Agency using a 3 percent simple interest from the origination of the note, instead of the LAIF rate. As such, the City increased the amounts in the General Fund and Developer Fees Special Revenue Fund to reflect increased interest balances. The unpaid amount of these notes is $7,350,839 and $7,709,038, respectively, which include unpaid accrued interest of $3,713,229 and $2,389,151, respectively. Tax Allocation Bond Refunding Series 2017 The former redevelopment agency issued Tax Allocation Bonds, which are special obligations of the Successor Agency secured by pledged property tax revenues. The bonds are not a debt of the City nor payable out of any funds or properties other than those of the Successor Agency. In February 2017, the Successor Agency issued Tax Allocation Refunding Bonds, Series 2017, in the amount of $34,800,000 to refund the Tax Allocation Bonds Series 2008 and Tax Allocation Bonds Housing Set -Aside. The difference between the reacquisition price and carrying value of the refunded debt was reported as a deferred outflow of resources and is amortized over the life of the refunded debt, as a component of interest expense, and totaled $1,803,519 as of June 30, 2024. Interest on the Tax Allocation Refunding Bonds, Series 2017, is paid as part of a variable rate between 2 percent and 5 percent payable on April 1 and October 1 of each year commencing on April 1, 2017. Principal payments are due annually in various amounts commencing October 1, 2017, through October 1, 2042. The unpaid balance as of June 30, 2024, was $28,695,000. Tax revenues deposited to the Redevelopment Property Tax Trust Fund maintained by the County of Los Angeles, less (1) amounts payable by the State to the Successor Agency and (11) unsubordinated Statutory Pass -Through Amounts, have been pledged as an available source of repayment for the bonds. 80 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 11— Long -Term Liabilities (Continued) C. Fiduciary Funds (Continued) If an Event of Default under the Indenture has occurred and is continuing, the Trustee may, with the prior written consent of the Assured Guaranty Municipal Corp (the "Insurer"), or if requested in writing by the Owners of the majority in aggregate principal amount of the Bonds then Outstanding, the Trustee shall, by written notice to the Successor Agency, declare the principal of the Bonds, together with the accrued interest thereon, to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable. The Insurer insured the Bonds maturing on October 1 of the years 2022 through 2037, inclusive, and 2042 (the "Insured Bonds"). The maturity of Insured Bonds shall not be accelerated without the consent of the Insurer and in the event the maturity of the Insured Bonds is accelerated, the Insurer may elect, in its sole discretion, to pay accelerated principal and interest accrued, on such principal to the date of acceleration (to the extent unpaid by the Successor Agency) and the Trustee shall be required to accept such amounts. If there are claims upon the Insurance Policy and payments are made by the Insurer, the Successor Agency agrees to pay to the Insurer (1) a sum equal to the total of all amounts paid by the Insurer under the Insurance Policy (the "Insurer Advances"); and (n) interest on such Insurer Advances from the date paid by the Insurer until payment thereof in full, payable to the Insurer at the Late Payment Rate per annum (collectively, the "Insurer Reimbursement Amounts"). Additionally, the Successor Agency shall repay any draws under the Reserve Policy and pay all related reasonable expenses incurred by Insurer and shall pay interest thereon from the date of payment by Insurer at the Late Payment Rate. "Late Payment Rate" means the lesser of (a) the greater of (1) the per annum rate of interest, publicly announced from time to time by JPMorgan Chase Bank at its principal office in The City of New York, as its prime or base lending rate (any change in such rate of interest to be effective on the date such change is announced by JPMorgan Chase Bank) plus 3%, and (ii) the then applicable highest rate of interest on the Insured Bonds (or Bonds for the Reserve Policy) and (b) the maximum rate permissible under applicable usury or similar laws limiting interest rates. The annual debt service requirements for the Tax Allocation Bond Refunding Series 2017 are presented below: Year Ending June 30, Principal Interest Total 2025 $ 1,030,000 $ 1,100,294 $ 2,130,294 2026 1,090,000 1,047,294 2,137,294 2027 1,140,000 991,544 2,131,544 2028 1,195,000 945,119 2,140,119 2029 1,235,000 907,897 2,142,897 2030-2034 6,910,000 3,772,222 10,682,222 2035-2039 8,265,000 2,382,916 10,647,916 2040-2043 7,830,000 641,800 8,471,800 Total $ 28,695,000 $ 11,789,086 $ 40,484,086 81 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note It — Long -Term Liabilities (Continued) D. Non -City Obligations 1915 Act Limited Obligation Improvements Bonds Vermont/Everett On January 27, 2000, $790,000 of 1915 Act Limited Obligation Improvement Bonds (1915 Vermont Drive/Everett Drive Bonds) for the Vermont Drive/Everett Drive Improvement Assessment District (the Vermont/Everett Assessment District) were issued. The 1915 Vermont Drive/Everett Drive Bonds are not a general obligation of the City, and neither the faith and credit nor the taxing power of the City is pledged to the payment of the bonds. The source of the debt service is from the property assessments within the Vermont/Everett Assessment District. The principal amount of the debt outstanding at June 30, 2024 was $225,000. Community Facilities District No. 2002-1 Special Tax Bonds On October 29, 2002, $17,370,000 of Special Tax bonds were issued for Community Facilities District No. 2002- 1 (the Community Facilities District). On October 12, 2012, these bonds were refunded with the issuance of Community Facilities District No. 2002-1 (Valencia Town Center) Special Tax Refunding bonds for $16,485,000. The Special Tax Refunding bonds are not a general obligation of the City, and neither the faith and credit nor the taxing power of the City is pledged to the payment of the bonds. The source of the debt service is from the property assessments within the Community Facilities District. The principal amount of the debt outstanding at June 30, 2024 was $10,665,000. Community Facilities District No. 2016-1 Vista Canes On February 13, 2020, $17,230,000 of Special Tax bonds were issued for Community Facilities District No. 2016- 1 (the Community Facilities District). The Special Tax Refunding bonds are not a general obligation of the City, and neither the faith and credit nor the taxing power of the City is pledged to the payment of the bonds. The source of the debt service is from the property assessments within the Community Facilities District. The principal amount of the debt outstanding at June 30, 2024 was $16,890,000. Note 12 — Risk Management A. Special Districts Risk Management Authority ("SDRMA') The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors, and omissions; injuries to employees; and natural disasters. The City joined Special Districts Risk Management Authority ("SDRMA") in 2005. SDRMA is a self-insurance risk pool that serves as a not -for -profit public agency to its members. Through SDRMA, the City held various deductibles from 2005 through 2021. Beginning in fiscal year 2019-2020, the City held a $50,000 general liability deductible. All general liability claims above the City's deductible are handled by SDRMA's $10,000,000 liability limit. 82 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 12 — Risk Management (Continued) A. Special Districts Risk Management Authority ("SDRMA') (Continued) Additionally, the City carries a $15,000,000 excess liability policy to cover any losses over the $10,000,000 SDRMA limit. The City's workers' compensation coverage was also administered by SDRMA. The City was self - insured for workers' compensation up to $250,000, but purchased coverage through SDRMA for individual claims exceeding $250,000 up to a maximum of $5,000,000. Settlements have not exceeded coverages for each of the past three fiscal years. B. California Joint Powers Insurance Authority ("CJPIA') The City joined California Joint Powers Insurance Authority ("CJPIA") effective July 1, 2021. CJPIA is a self- insurance risk pool that serves its members. Claims incurred prior to joining CJPIA continue to be administered by SDRMA. Risk Pool Membershi CJPIA is composed of 126 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the CJPIA is to arrange and administer programs for the pooling of self -insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. CJPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine -member Executive Committee. Each member pays an annual contribution at the beginning of the coverage period. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk -sharing pool. Excess Liability Proms Liability coverage includes auto liability, employment practices liability, public officials' errors and omissions, bodily injury, personal injury, third party property damage, advertising injury, and employee benefit administration liability. The City has a retained limit of $100,000 per occurrence. The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the CJPIA's website: httDs:HclDla.ore/coverage/risk-shanne-DOols/. Excess Workers' Compensation Program The City has a retained limit of $250,000 per occurrence for workers' compensation claims. CJPIA's pooled retention is $1 million per occurrence with reinsurance to statutory limits under California Workers' Compensation Law. Employer's Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer's Liability losses from $5 million to $10 million are pooled among members. 83 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 12 — Risk Management (Continued) B. California Joint Powers Insurance Authority ("CJPIA') (Continued) Purchased Insurance All -Risk Property Protection Program. This insurance protection is underwritten by several insurance companies. The City's property is currently insured according to a schedule of covered property submitted by the City to the Authority. The total insured value of scheduled City property is $355,565,976. There is a $10,000 deductible per occurrence except for non -emergency vehicle insurance which has a $2,500 deductible. Pollution Legal Liability Insurance Program. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City. Coverage is on a claims -made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million. Crime Insurance Program. Formerly called Blanket Fidelity Bond, this policy covers faithful performance, depositor's forgery, theft of money and securities, and computer fraud related to the transfer of money. The policy limit is $5,000,000, and the deductible is $25,000. Adeyuacy of Protection During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2023-24. C. Claims and Judgments Payable The following table presents claims and judgments payable administered by both SDRMA and CJPIA for the year ended June 30, 2024, and its two preceding years: Current Year Current Year Balance at Claims and Changes Claim Balance at Year Ended July 1 in Estimates Payments June 30 June 30, 2022 $ 6,410,646 $ 2,265,135 $ (4,030,421) $ 4,645,360 June 30, 2023 $ 4,645,360 $ 6,078,585 $ (3,283,349) $ 7,440,596 June 30, 2024 $ 7,440,596 $ 4,349,501 $ (2,212,791) $ 9,577,306 84 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 13 — Pension Plan A. General Information about the Pension Plan Plan Description The City contribution to the California Public Employees Retirement System ("CAPERS"), an agent multiple - employer defined benefit pension plan for all permanent full-time general and some part-time employees of the City. CAPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statue and City ordinance. A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the June 30, 2022 Annual Actuarial Valuation Report. This report and Ca1PERS' audited financial statements are publicly available reports that can be obtained at CAPERS' website under Forms and Publications. Benefit Provided CAPERS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. Benefit provisions under both plans are established by State Statute and City Resolution as follows: Miscellaneous Tier 1 Tier 2 Tier 3 Benefit formula 2.7% (a.) 55 2% (a.) 60 2% (a.) 62 Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50-55 50-60 52-62 Required employee contribution rates 8.000% 7.000% 7.250% Required employer contribution during measurement period 9.820% 9.820% 9.820% Applies to: Employees Employees hired Employees hired hired before between April 9, 2011 January 1, 2013 or later April 9, 2011 * and December 31, 2012 or those hired January 1, 2013, or later, who have been a classic CalPERS member with a public agency or in a classify reciprocal plan within the last 6 months* * Those hued as part seasonal (PIS) who later convert to regular full tune will quality for 1 ier 1, 2, or 3 depending on their conversion date and status when hired. CAPERS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits (total service across all CAPERS employers, and with certain other Retirement Systems with which Ca1PERS has reciprocity agreements). All members are eligible for non -duty disability benefits after 5 years of service. The death benefit is one of the following: Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for the plan are applied as specified by the Public Employees' Retirement Law. 85 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 13 — Pension Plan (Continued) A. General Information about the Pension Plan (Continued) Employees Covered by Benefit Terms At June 30, 2022, the valuation date, the following employees were covered by the benefit terms: Active employees Transferred and terminated employees Retired Employees and Beneficiaries Total Contributions 473 516 289 1,278 Section 20814(c) of the California Public Employees' Retirement Law ("PERL") requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CAPERS' annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. The employer contributions made during the year ended June 30, 2024 were in the amount of $9,661,147. B. Net Pension Liability Actuarial Methods and Assumption Used to Determine Total Pension Liability The June 30, 2022 valuation was rolled forward to determine the June 30, 2023 total pension liability, based on following actuarial methods and assumptions: Valuation Date Measurement Date Measurement Period Actuarial Cost Method Actuarial Assumptions: Discount Rate Inflation Salary Increases Payroll Growth Investment Rate of Return Retirement Age Mortality Rate Tablets June 30, 2022 June 30, 2023 July 1, 2022 to June 30, 2023 Entry Age Actuarial 6.90% 2.300% Varies by Entry Age and Service 2.750% 7% net of pension plan investment and administrative expense; includes inflation. The probabilities of Retirement are based on the 2021 CAPERS Experience Study for the period from 2001 to 2019. Derived using CaIPERS' Membership Data for all Funds. (')The probabilities of mortality are based on the 2021 CAPERS Experience Study for the period from 2001 to 2019. Pre -retirement and Post -retirement mortality rates include 15 years of projected mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. 86 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 13 — Pension Plan (Continued) B. Net Pension Liability (Continued) Changgo f Assumptions There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, Ca1PERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CAPERS Experience Study and Review of Actuarial Assumptions. Long-term Expected Rate o Return The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CAPERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds' asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 basis points. The expected real rates of return by asset class are as follows. Assumed Asset Real Return Asset ClassM Allocation Years 1' 2 Global Equity - Cap -weighted 30.00% 4.54% Global Equity - Non -Cap -weighted 12.00% 3.84% Private Equity 13.00% 7.28% Treasury 5.00% 0.27% Mortgage -backed Securities 5.00% 0.50% Investment Grade Corporates 10.00% 1.56% High Yield 5.00% 2.27% Emerging Market Debt 5.00% 2.48% Private Debt 5.00% 3.57% Real Assets 15.00% 3.21% Leverage -5.00% -0.59% 100.00% An expected inflation rate of 2.30% used 2 Figures are based on 2021 Asset Liability Management Study Discount Rate The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 87 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 13 — Pension Plan (Continued) C. Changes in the Net Pension Liability The following table shows the changes in net pension liability for the City's Miscellaneous Plan recognized over the measurement period: Balance at June 30, 2022 (Valuation Date) Changes Recognized for the Measurement Period: Service Cost Interest on the total pension liability Changes of benefit terms Changes of assumptions Difference between expected and actual experience Net plan to plan resource movement Contributions from the employer Contributions from employees Net investment income Benefit payments, including refunds of employee contributions Administrative Expense Other Net Changes during July 1, 2022 to June 30, 2023 Balance at June 30, 2023 (Measurement Date) Increase (Decrease) Total Pension Plan Fiduciary Net Net Pension Liability Position Liability/(Asset) (a) (b) (c) _ (a) - (b) $ 265,397,069 $ 226,608,751 $ 38,788,318 6,560,886 6,560,886 18,498,487 18,498,487 197,813 197,813 4,108,538 4,108,538 9,124,266 (9,124,266) 2,879,083 (2,879,083) 14,130,498 (14,130,498) (9,779,721) (9,779,721) - (166,637) 166,637 19,586,003 16,187,489 3,398,514 $ 284,983,072 $ 242,796,240 $ 42,186,832 Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the plans as of the measurement date, calculated using the discount rate of 6.90%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage -point lower (5.90%) or 1 percentage -point higher (7.90%) than the current rate: Plan's Net Pension Liability/(Asset) Discount Rate Current Discount Discount Rate - 1%(5.90%) Rate (6.90%) + 1%(7.90%) Miscellaneous Plan $ 85,669,719 $ 42,186,832 $ 6,839,406 Pension Plan Fiduciary Net Position Detailed information about the plan's fiduciary net position is available in the separately issued CAPERS financial report. 88 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 13 — Pension Plan (Continued) D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions For the year ended June 30, 2024, the City recognized pension expense in the amounts of $12,959,186 for the miscellaneous plan. As of measurement date of June 30, 2023, the City has deferred outflows and deferred inflows of resources related to pensions as follows: Miscellaneous Plan Contribution made after measurement period $ Changes of assumptions Difference between expected and actual experience Net difference between projected and actual earning on pension plan investments Total Deferred outflows of Resources 9,661,147 $ 6,041,015 3,755,320 10,981,677 30,439,159 $ Deferred inflows of Resources (1,408,935) (1,408,935) The amounts above are net of outflows and inflows recognized in the 2022-2023 measurement period expense. The expected average remaining service lifetime (" EARSU) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). The EARSL for the 2022-23 measurement period is 4.4 years, which was obtained by dividing the total service years of 5,669 (the sum of remaining service lifetimes of the active employees) by 1,278 (the total number of participants: active, inactive, and retired), respectively. The $9,661,147 reported as deferred outflows of resources related to pensions, resulting from the City's contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability and collectively net pension liability, respectively, in the year ending June 30, 2025. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in the future pension expense as follows: Year Ending Deferred Outflows/ June 30, (Inflows) of Resources 2025 $ 5,301,424 2026 4,136,427 2027 9,243,423 2028 687,803 Total $ 19,369,077 89 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 14 — Other Postemployment Benefits ("OPEB") A. General Information about the OPEB Plan Plan Description The City has elected through resolution to provide healthcare benefits as single employer plan to retirees, spouses, and eligible dependents of the City. This plan provides postemployment medical insurance benefits through the CAPERS Health Plan (the "Plan"). The City has administrative involvement with the Plan, and has included the trust, as well as Plan required disclosures within the City's ACFR. A separate financial report is not issued. The City conducted an actuarial valuation to determine the City's obligation to fund OPEB and determined that it served the City's interests to prefund those benefits. In December 2011, the City Council approved Resolution 1I- 89 adopting the Public Agencies Post -Retirement Health Care Plan Document and Trust Agreement. The OPEB Plan Trust is a tax -qualified irrevocable trust, organized under Internal Revenue Code ("IRC") Section 115, established to pre -fund OPEB. The Plan Trustee is U.S. Bank, and Public Agencies Retirement Services ("PARS") is the Trust Administrator. However, as described above, the City has administrative involvement in the Plan, and reports assets as a fiduciary component unit. Eli i�ty and Membership Covered by Benefit Terms City employees who have a service retirement from the City at age 50 with five or more years of city service are eligible to receive post -employment medical benefits. Employees who have a disability retirement are also eligible. The benefit for employees hired before January 1, 2008 is up to $1,260 per month. No minimum years of service were required for the unrepresented employees hired before January 1, 2008 and retired before January 1, 2012 and represented employees hired before January 1, 2008 and retired after January 1, 2012 and before January 1, 2014. For employees hired before January 1, 2008 the following vesting applies: Year of service Vested Percentage 0 to 5 years 0% 5 to 9 years 50% 10 to 14 years 75% 15 years and greater 100% Employees hired after January 1, 2008, receive the Ca1PERS minimum benefits and are not subjected to the vesting schedule above. At June 30, 2024 measurement date, the following numbers of participants were covered by the benefit terms: Active plan members Inactive plan members currently receiving benefits Inactive plan members entitled to but not receiving benefits Total 476 155 42 673 90 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 14 — Other Postemployment Benefits ("OPEB") (Continued) A. General Information about the OPEB Plan (Continued) Contrihutionv The obligation of the City to contribute to the plan is established and may be amended by the City Council. Employees are not required to contribute to the plan. The City has established a practice of contributing to the OPEB Plan Trust 100 percent of the cash subsidy. The cash subsidy represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost of each year and is not determined based on a level of pay. As a result of reporting a net OPEB asset, the cash subsidy component of the actuarial determined contribution for fiscal year 2024 was negative $655,000, and no cash contribution was made. In addition, the City received a credit in the amount of $278,000 relating to implied subsidy benefit payment which has been included in the contributions to the OPEB Plan Trust. The total cash benefits paid directly by the OPEB Plan Trust to the recipients was in the amount of $1,380,038. Additional $278,000 implied subsidy benefits were reported, which resulted in reporting total benefit payments to plan participants in the amount of $1,658,038. B. Net OPEB Liability The OPEB liability was measured as of June 30, 2024, and total liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2024. SignificantActuarial Assumptions Used for Total OPEB Liability The total OPEB liability, measured as of June 30, 2024, was determined using the following actuarial assumptions: Actuarial Valuation Date Contribution Policy Discount Rate and Long -Term Expected Rate of Return Inflation Mortality, Retirement, Disability, Termination Mortality Improvement June 30, 2022 Pre -fund cash benefit ADC with PARS Balanced Fund Implied subsidy benefit on pay-as-you-go basis 6.00% at June 30, 2023 and 6.00% at June 30, 2024 Expected City contributions projected to keep sufficient plan assets to pay all benefits from trust 2.50% annually CAPERS 2000-2019 Experience Study Mortality projected fully generational with Scale MP-2021 Salary Increases Aggregate - 2.75% annually Merit - CaIPERS 2000-2019 Experience Study Medical Trend Non -Medicare - 8.50% for 2024, decreasing to an ultimate rate of 3.45% in 2076; Medicare - 7.50% for 2024, decreasing to an ultimate rate of 3.45% in 2076; Medicare (Kaiser) - 6.25% for 2024, decreasing to an ultimate rate of 3.45% in 2076 PEMHCA Minimum Increases 3.50% annually Participation at Retirement Hired < 1/1/08 - 95% Hired > 1/1/08 - 60% Waived Retirees Reelection 5% re-elect at 65 for pre-65 Cap Increase $1,260.26; Medical trend for EE+1 cap 91 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 14 — Other Postemployment Benefits ("OPEB") (Continued) B. Net OPEB Liability (Continued) Chyme in assumptions There was no change in assumptions in 2024 measurement period. Discount Rate The discount rate used to measure the total OPEB liability was 6.00%. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. Expected Long -Term Rates o Return Asset Class Global Equity Fixed Income Cash Assumed Long -Term Rate of Inflation Expected Long -Term Net Rate of Return, Rounded C. Change in Net OPEB Liability Target Allocation PARS - Balanced Expected Real Rate of Return 60.00% 4.56% 35.00% 0.78% 5.00% -0.50% 100.00% 2.50% 6.00% The following presents the changes in the net OPEB liability for the governmental activities' Retiree Health Plan: Balance at June 30, 2023 Changes Recognized for the Measurement Period: Service Cost Interest on the total OPEB liability Net investment income Employer cash contribution Employer implied subsidy contribution Administrative Expenses Benefit payments Assumption changes Plan experience Investment experience Net Changes during July 1, 2023 to June 30, 2024 Balance at June 30, 2024 (Measurement Date) Increase (Decrease) Total OPEB Plan Fiduciary Net Net OPEB Liability Position liability/ (Asset) (a) (b) (c) = (a) - (b) $ 41,603,747 $ 46,729,797 $ (5,126,050) 975,655 975,655 2,505,023 - 2,505,023 - 5,817,416 (5,817,416) 278,000 (278,000) (110,704) 110,704 (1,658,038) (1,658,038) - 1,822,640 4,326,674 (2,504,034) $ 43,426,387 $ 51,056,471 $ (7,630,084) 92 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 14 — Other Postemployment Benefits ("OPEB") (Continued) C. Change in Net OPEB Liability (Continued) Sensitivity of the Net OPEB Liability to Change in the Discount Rate The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.00 percent) or 1-percentage- point higher (7.00 percent) than the current discount rate: Plan's Net OPEB Liability / (Asset) Discount Rate Current Discount Discount Rate -1%(5.00%) Rate (6.00%) +1 %(7.00%) $ (1,907,415) $ (7,630,084) $ (12,393,267) Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates: Plan's Net OPEB Liability / (Asset) Healthcare Cost Healthcare Cost Healthcare Cost Trend Rate - 1% Trend Rate Trend Rate + 1% $ (13,624,518) $ (7,630,084) $ (251,918) OPEB Expense and De erred Quy7ows of Resources and Deferred Inflows of Resources Related to OPEB For the measurement period ended June 30, 2024, the City recognized OPEB credit in the amount of $1,855,293. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred outflows Deferred inflows of Resources of Resources Changes in assumptions $ 5,100,211 $ (9,783,735) Difference between expected and actual experience - (8,262,094) Net difference between projected and actual earning on OPEB plan investments - (686,483) Total $ 5,100,211 $ (18,732,312) Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized as expense as follows: Deferred Measurement Period Outflows/(Inflows) Ending June 30, of Resources 2025 $ (2,926,209) 2026 (1,170,007) 2027 (3,234,370) 2028 (2,401,848) 2029 (2,732,098) Thereafter (1,167,569) Total $ (13,632,101) 93 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 14 — Other Postemployment Benefits ("OPEB") (Continued) D. Cash and Investment Held in Trust The City elected a discretionary investment approach with a moderate investment objective. The primary objective is to maximize total Plan return, subject to the risk and quality constraints established. The Plan's targeted rate of return is 6.5 percent. The asset allocation ranges for this objective are 0 percent to 20 percent cash source, 30 percent to 50 percent fixed income, and 50 percent to 70 percent equity. Fees incurred by the Plan for the investment management services are included in fair value of the investment, as they are paid through revenue sharing, rather than a direct payment. The parameters for fixed income and equity securities based on asset allocation are as follows: Authorized Investment Type Fixed Income Long-term fixed income Intermediate -term fixed income Short-term fixed income High -yield portion of the plan Equity Domestic large cap equity Domestic mid -capitalization equity Domestic small -capitalization equity International equity Real estate Maximum Percentage of Minimum Percentage of Total Plan Assets Total Plan Assets 20% 0% 50% 15% 15% 0% 8% 0% 50% 20% 15% 0% 20% 0% 20% 0% 10% 0% Cash and investments related to the Plan consist of the following: Assets Money market funds U.S. Treasury U.S. government enterprise securities Corporate notes Foreign notes Municipal bonds Mutual funds - equity Mutual funds - fixed income Total Assets Accrued Income Total E. Concentrations of Credit Risk Fair Value $ 1,439,216 5,317,960 3,404,210 4,677,059 242,351 272,930 30,914,136 4,685,541 50,953,403 103,068 $ 51,056,471 Investments in any one issuer that represent 5 percent or more of the Plan's total cash and investments are as follows: Issuer Investment Type Amount Investments The Vanguard Group, Inc. - Vanguard Growth & Income Mutual Funds - Equity 6,161,414 12% BlackRock, Inc. - iShares S&P 500 Growth Mutual Funds - Equity 5,904,512 12% Federal National Mortgage Association US Government Sponsored Enterprise Securities 2,562,152 5% Federal Home Loan Mortgage Corporation Collateralized Mortgage Obligation 2,755,757 5% 94 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 15 — Deferred Compensation Plan/Defined Contribution Plan The City provides a deferred compensation/defined contribution plans for certain classifications of management under IRC Section 401(a). City participation in contributions to the plans is mandatory. The City is obligated to contribute amounts ranging from $2,000 to $23,000 per participant per year. Employee contributions to certain plans are voluntary. During the year ended June 30, 2024, there were 1,847 participants in the plans. The employer and employee contributions were in the amounts of $516,272 and $2,552,137, respectively. Note 16 — Developer Credits The City and County of Los Angeles have established the Santa Clarita Valley Bridge and Major Thoroughfare Districts to accommodate the needs of future development anticipated by the County of Los Angeles and the City of Santa Clarita General Plans. Included in the formation documents are provisions for district fees to be paid by developers, which are to be used to assist the City in constructing and maintaining the infrastructure within the areas of benefit. In lieu of paying the district fees, developers are allowed to donate infrastructure (roadways, bridges, intersections, and interchanges) necessary for the future development of the districts. In certain cases, the developer may donate infrastructure with a value that exceeds the district fees collected. If this occurs, the developer can receive a credit toward future district fees or request a cash withdrawal of the excess amount, subject to City approval if funding is determined to be available. As of June 30, 2024, the City accrued a liability of $49,977,943 for the value of infrastructure donated in excess of the district fees that were owed. There is no maturity schedule for the developer payables, and it has been determined that current financial resources will not be used to repay the liability; therefore, the liability has been recorded as a long-term obligation in the governmental activities in the Statement of Net Position. Bridge and Throughfare Credits: Bouquet District Eastside District Via Princessa District Valencia District Balance July 1, 2023 Additions $ 21,955,779 $ $ 11,927,888 380,692 15,571,175 142,409 Balance Deletions June 30, 2024 $ 21,955,779 11,927,888 380,692 15,713,584 Total Bridge and Thoroughfare Credits $ 49,835,534 $ 142,409 $ - $49,977,943 Note 17 — Net Investment in Capital Assets The net investment in capital assets for the governmental activities, and business -type activities is calculated as follows: Total capital assets, net Deferred charges for capital related debt Capital related debt Unspent debt proceeds Net investment in capital assets Governmental Business -Type Activities Activities $1,236,492,893 $ 84,534,345 1,155,814 (92,419,630) 9,317,576 $1,154,546,653 $ 84,534,345 95 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 18 — Classification of Fund Balances At June 30, 2024, fund balances are classified in the governmental funds as follows: Major Governmental funds Landscape Nonmajor Total General Bridge and Impact Maintenance Governmental Governmental Fund Thoroughfare Fees District #1 Funds Funds Nonspendable: Prepaid items $ 549,583 $ - $ - $ 642 124,236 $ 674,461 Deposits 60,000 - - - - 60,000 Notes to RDA Successor Agency 7,350,839 - - - - 7,350,839 Advances to other funds 595,046 - - - - 595,046 Total nonspendable 8,555,468 - - 642 124,236 8,680,346 Restricted: Landscape maintenance - - - 26,932,630 7,636,084 34,568,714 Lighting District - - - - 17,276,463 17,276,463 Capital improvements - 14,589,203 2,560,557 - 10,902,736 28,052,496 Transportation - - - - 53,428,070 53,428,070 Open space preservation - - - - 8,800,569 8,800,569 Public safety - - 53,886 - 602,050 655,936 Public Library - - 3,700,879 - 7,803,873 11,504,752 Air quality improvement - - - - 643,333 643,333 Stormwater - - - - 5,325,179 5,325,179 Public education and government - - - - 892,726 892,726 Tourism marketing - - - - 1,112,747 1,112,747 Low and moderate income housing - - - - 5,296,223 5,296,223 Clean safe water - - - - 8,136,604 8,136,604 Bond proceeds for: Capital projects 9,317,576 - - - - 9,317,576 Debt services 726 - - - - 726 Pensions 2,455,139 - - - - 2,455,139 Other - - - - 10,894,356 10,894,356 Total restricted 11,773,441 14,589,203 6,315,322 26,932,630 138,751,013 198,361,609 Assigned: Operational 196,660 196,660 Capital projects 22,059,857 - - - 1,755,136 23,814,993 Public facilities 171,313,650 - - - - 171,313,650 Total assigned 193,570,167 - - - 1,755,136 195,325,303 Unassigned 68,028,558 - - - (1,930,730) 66,097,828 Total Fund Balance $ 281,927,634 $ 14,589,203 $ 6,315,322 $ 26,933,272 $ 138,699,655 $ 468,465,086 96 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 19 — Changes to or within the Financial Reporting Entity The Developer Fees Special Revenue Fund, Public Library Special Revenue Fund and American Rescue Plan Act Special Revenue Fund were previously reported as a major fund, but due to the decrease in the activities, the funds no longer meets the quantitative threshold requiring the fund to be reported as a major fund for the fiscal year ended June 30, 2024. The changes to or within the financial reporting entity resulted in adjustments to and reclassification of beginning fund balance. There were also fund reclassification occurred at the beginning of the fiscal year related to the Impact Fees Special Revenue Fund from General Fund and Public Library Special Revenue Fund. June 30, 2023 Change to or As Previously with the Financial Fund June 30, 2023 Reported Reporting Entity Reclassification As Reclassified Governmental Funds Major Funds: General Fund $ 267,762,150 $ $ (808,562) $ 266,953,588 Bridge and Thoroughfare Special Revenue Fund 8,154,170 8,154,170 Landscape Maintenance District #1 Special Revenue Fund 24,518,473 24,518,473 Developer Fees Special Revenue Fund 12,105,435 (12,105,435) - Public Library Special Revenue Fund 5,407,159 (5,407,159) - - Impact Fees Special Revenue Fund - - 5,097,736 5,097,736 Nonmajor Funds 103,323,835 17,512,594 (4,289,174) 116,547,255 Total Governmental Funds $ 421,271,222 $ - $ - $ 421,271,222 Note 20 — Santa Clarita Watershed Recreation and Conservancy Authority In June 1992, the City entered into a joint powers agreement with the Santa Monica Mountains Conservancy (the Conservancy) to create the Watershed Authority. The purpose of the Watershed Authority is to acquire, develop, and conserve additional park and open space lands, including water -oriented recreation and conservation projects. The governing board consists of two representatives from the Conservancy and two from the City. The City performs administrative functions for the Watershed Authority. The Watershed Authority is reported as a custodial fund in these financial statements. The Watershed Authority may request the City to make annual contributions. For the year ended June 30, 2024, the City did not make any contributions. Separate financial statements for the Santa Clarita Watershed Recreation and Conservancy Authority may be obtained from the City's administrative offices at 23920 Valencia Boulevard, Santa Clarita, California 91355. 97 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 21— Commitments and Contingencies A. Project Commitments The City has active projects as of June 30, 2024. At year-end, the City's commitments with contractors for these projects are as follows: Projects Commitments Arts $ 42,500 Beautification 352,217 Circulation 4,030,302 Facilities & Buildings 13,776,150 Maintenance 23,904,837 Parks & Recreation 16,733,397 Resource & Conservation 8,402,656 Street & Bridges 38,655,198 Trails & Transit 256,358 $ 106,153,615 B. Encumbrances The City utilizes encumbrance accounting as a means of controlling expenditures. Under this method, funds are encumbered when purchase orders, contracts, and other commitments are signed or approved by authorized City officials. Such outstanding commitments at year-end do not constitute expenditures or liabilities. Encumbrances of balances within the governmental funds are classified as either restricted or assigned and are included in the respective categories. These encumbrances are not separately classified in the financial statements and are summarized at June 30, 2024, as follows: Amount General Fund $ 22,256,517 Other governmental Funds 74,591,239 C. Contingencies The City has received Federal and State grants for specific purposes that are subject to review and audit by the Federal government. Although such audits could result in expenditure disallowance under grant terms, any required reimbursements are not expected to be material. RFI-Bermite Lawsuit A lawsuit (the "RFI-Bermite Lawsuit") seeking damages of at least $750 million was brought against the City in July of 2021, by Remediation Financial, Inc. ("RFI") and Bermite Recovery, LLC ("Bermite," and together with RFI, "Plaintiffs"). The lawsuit alleges that the City interfered with the Plaintiffs' ability to develop a 996-acre area of undeveloped property located in the City, commonly referred to as the "Whittaker-Bermite Site." The Plaintiffs allege that the City unlawfully interfered with their development efforts and prevented the Plaintiffs from obtaining the financing and/or development partners they needed to develop the Whittaker-Bermite Site, resulting in lost profits to the Plaintiffs. On August 8, 2022, the City filed a motion to strike Plaintiffs' state law claims based on California's Anti-SLAPP Statute, and a separate motion to dismiss the complaint on various grounds, including state -law immunities, lack of standing, and other grounds. 98 City of Santa Clarita Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 Note 21— Commitments and Contingencies (Continued) C. Contingencies (Continued) The City was successful in a first round of challenges to the Complaint to eliminate RFI as a Plaintiff. An amended Complaint was filed on behalf of Bermite, based upon its prior ownership of 30 acres. The City again brought challenges to the Bermite complaint —motions to dismiss and an Anti-SLAPP motion. The City was successful in eliminating all but one cause of action, and the City was awarded attorney's fees. The claim against the City has been reduced to $30 million due to Bermite being the only remaining Plaintiff. Discovery is almost complete. Initially, SDRMA and its re -insurer, Evanston Insurance, were providing a defense under a reservation of rights. However, with the elimination of all but one of the original causes of action, the insurers have indicated the suit is no longer within their coverage. The City filed a motion for summary judgment in hopes of disposing the remaining cause of action. The City believes the RFI-Bermite Lawsuit is without merit and intends to vigorously defend itself against all claims alleged by the Plaintiffs; however, depending on the dollar amount of the final judgment, damages, and potential attorneys' fees, a judgment in favor of the Plaintiffs could have an adverse impact on the City's finances. The City expects to manage payment of any judgment in the RFI-Bermite Lawsuit in a way that would enable the City to pay its obligations when due. As of the financial statement issuance date, the outcome of the lawsuit cannot be reasonably estimated. Note 22 — Other Required Disclosure A. Deficit Net Positions and Fund Balances Funds with deficit fund balances and net position at June 30, 2024 are as follows: Deficit Special Revenue Funds: Transportation Development Act 8 $ (653,965) Community Development Block Grant (5,862) Measure R Highway Improvement (1,067,700) Measure M ATP (99,260) Measure A Safe Parks (628) Misc Grants (188,289) The deficit fund balances will be eliminated through reimbursement from grantor agencies. 99 This page intentionally left blank. 100 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) 101 This page intentionally left blank. 102 REVENUES: Taxes Licenses and permits Intergovernmental Charges for services Investment income Fines and penalties Other revenues Total revenues EXPENDITURES: Operating: Personnel Operations and maintenance Capital outlay Capital improvement projects Total expenditures City of Santa Clarita Required Supplementary Information (Unaudited) Budgetary Comparison Schedule - General Fund For the Year Ended June 30, 2024 Original Final Budget Budget $ 111,460,343 8,872,071 206,744 11,117,698 5,181,856 1,142,925 82,200 138,063,837 55,324,786 45,545,140 1,052,481 16,619,436 118,541,843 $ 111,657,014 12,006,271 3,802,993 12,187,362 5,181,856 1,150,425 365,951 146,351,872 55,357,880 48,677,342 6,657,854 57,181,797 167,874,873 Actual $ 114,227,509 12,756,490 3,548,921 13,300,665 12,824,215 1,247,292 814,177 158,719,269 51,839,648 43,231,179 6,627,656 24,601,183 126,299,666 Variance with Final Budget $ 2,570,495 750,219 (254,072) 1,113,303 7,642,359 96,867 448,226 12,367,397 3,518,232 5,446,163 30,198 32,580,614 41,575,207 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 19,521,994 (21,523,001) 32,419,603 53,942,604 OTHER FINANCING SOURCES (USES): Transfers in Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year, as previously reported Change within financial reporting entity: Fund reclassification Beginning of year, as restated (Note 19) End of year 749,101 (20,592,075) (19,842,974) 4,388,078 (21,758,749) (17,370,671) $ (320,980) $ (38,893,672) 3,463,778 (20,909,335) (17,445,557) (924,300) 849,414 (74,886) 14,974,046 $ 53,867,718 267,762,150 (808,562) 266,953,588 $ 281,927,634 103 City of Santa Clarita Required Supplementary Information (Unaudited) Budgetary Comparison Schedule - Bridge and Thoroughfare Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Investment earnings $ 664,545 $ 2,284,644 $ 2,739,201 $ 454,557 Developer fees - 51892,786 5,961,690 68,904 Other revenues 368,724 368,724 368,724 - Total revenues 1,033,269 8,546,154 9,069,615 523,461 EXPENDITURES: Operating: Personnel Operations and maintenance Capital outlay Capital improvement projects Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year 120,396 120,408 110,362 10,046 596,830 626,330 2,254,630 (1,628,300) 2,032 2,032 2,032 - 532,000 4,632,696 267,558 4,365,138 1,251,258 5,381,466 2,634,582 2,746,884 $ (217,989) $ 3,164,688 6,435,033 $ 3,270,345 8,154,170 $ 14,589,203 104 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Impact Fees Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Investment earnings Developer fees Other revenue Total revenues EXPENDITURES: Operating: Operations and maintenance Capital outlay Capital improvement projects Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year, as previously reported Change within financial reporting entity: Fund reclassification Beginning of year, as restated (Note 19) End of year $ - $ - $ 360,714 $ 360,714 - 5,005,076 5,125,575 120,499 - 205,000 - (205,000) - 5,210,076 5,486,289 276,213 - 4,097,550 3,960,747 136,803 - 205,000 - 205,000 - 1,428,871 307,956 1,120,915 - 5,731,421 4,268,703 1,462,718 - (521,345) 1,217,586 1,738,931 $ - $ (521,345) 1,217,586 $ 1,738,931 5,097,736 5,097,736 $ 6,315,322 105 City of Santa Clarita Required Supplementary Information (Unaudited) Budgetary Comparison Schedule - Landscape Maintenance District #1 Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Taxes $ 294,264 $ 294,264 $ 306,309 $ 12,045 Special assessments 15,716,924 15,716,924 15,752,739 35,815 Investment earnings 555,886 555,886 1,092,874 536,988 Total revenues 16,567,074 16,567,074 17,151,922 584,848 EXPENDITURES: Operating: Personnel 1,672,349 1,622,954 1,526,774 96,180 Operations and maintenance 13,455,547 14,190,229 12,623,562 1,566,667 Capital outlay 24,289 24,289 24,289 - Capital improvement projects 673,277 1,276,438 515,498 760,940 Total expenditures 15,825,462 17,113,910 14,690,123 2,423,787 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 741,612 (546,836) 2,461,799 3,008,635 OTHER FINANCING (USES): Transfers out Total other financing (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year (47,000) (47,000) (47,000) (47,000) (47,000) (47,000) $ 694,612 $ (593,836) 2,414,799 $ 3,008,635 24,518,473 $ 26,933,272 106 City of Santa Clarita Required Supplementary Information (Unaudited) Notes to the Budgetary Comparison Schedule For the Year Ended June 30, 2024 Budgetary Information Annual budgets are legally adopted on a basis consistent with generally accepted accounting principles in the United States of America for the General Fund and each of the special revenue funds. All annual appropriations lapse at fiscal year-end. On or before the last day in January of each year, all operational units submit requests for appropriations to the City Manager for budget preparation purposes. The proposed budget is presented to the City Council for review. The City Council holds public hearings, and a final budget must be adopted no later than June 30. The appropriated budget is prepared by fund, function, and department at the category level. The City reports the following categories: personnel, operations and maintenance, and capital outlay. Additionally, the City separately prepares a Capital Improvement Projects budget. The budgetary control for the Capital Improvement Program is at the program level. The City's Department Heads, with approval of the City Manager, may make transfers of appropriations within certain line -items within a program, but may not exceed the total appropriated amounts for each category. City Manager may approve transfers that do not change the total appropriated amount within the fund. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the category level. The City does not require additional appropriations through the budget process for bond funds, grant funds, trust and custodial funds, and capital funds. Legislative action by the City Council to issue bond funds, accept grants, and/or authorize capital projects is considered as authority to expend funds for those purposes. There is no adopted budget for Santa Clarita Public Television Authority Special Revenue Fund. Under encumbrance accounting, purchase orders, contracts, and other commitments for expenditures are recorded to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary accounting. Since encumbrances do not yet constitute expenditures or liabilities, encumbrances outstanding at year-end are classified as either restricted, committed, or assigned fund balances. unexpended appropriations lapse at year-end. 107 City of Santa Clarita Required Supplementary Information (Unaudited) Schedule of Changes in Net Pension Liability and Related Ratios For the Year Ended June 30, 2024 Last Ten Fiscal Years' California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan Measurement period Total pension liability Service cost Interest Changes of assumptions Changes of Benefit Terms Differences between expected and actual experience Benefit payments, including refunds of employee contributions Net change in total pension liability Total pension liability - beginning Total pension liability - ending (a) Pension fiduciary net position Contributions - employer Contributions - employee Net investment income Benefit payments, including refunds of employee contributions Net plan to plan resources movement Administrative expense Other miscellaneous income/expense' Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (b) Plan net pension liability (asset) - ending (a) - (b) Plan fiduciary net position as a percentage of the total pension liability Covered payro113 2022-23 2021-22 S 6,560,886 S 6,170,934 S 18,498,487 17,206,725 - 10,873,827 197,813 - 4,108,538 (2,536,083) 2020-21 2019-20 2018-19 5,527,979 S 5,350,001 S 5,104,511 16,234,316 15,203,985 14,120,352 1,168,851 2,498,828 3,019,582 (9,779,721) (8,535,910) (7,668,205) (7,134,971) (6,246,516) 19,586,003 23,179,493 15,262,941 15,917,843 15,997,929 265,397,069 242,217,576 226,954,635 211,036,792 195,038,863 S 284,983,072 S 265,397,069 S 242,217,576 $ 226,954,635 S 211,036,792 $ 9,124,266 $ 8,462,964 $ 11,219,959 $ 15,978,300 $ 12,500,090 2,879,083 2,704,400 2,551,579 2,530,805 2,478,266 14,130,498 (18,522,060) 44,522,336 8,957,955 10,255,487 (9,779,721) (8,535,910) (7,668,205) (7,134,971) (6,246,516) (166,637) (151,157) (192,013) (242,657) (109,362) 355 16,187,489 (16,041,763) 50,433,656 20,089,432 18,878,320 226,608,751 242,650,514 192,216,858 172,127,426 153,249,106 S 242,796,240 S 226,608,751 S 242,650,514 S 192,216,858 S 172,127,426 $ 42,186,832 S 38,788,318 S (432,938) $ 34,737,777 S 38,909,366 85.20% 85.38% 100.18% 84.69% 81.56% S 39,192,868 S 36,363,784 S 35,733,541 $ 34,033,087 S 31,563,882 Plan net pension liability as a percentage of covered payroll 107.64% 106.67% -1.21% 102.07% 123.27% During Fiscal Year 2017-18, CaIPERS implemented GASB 75 and reported its proportionate share of activity related to postemployment benefits for participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75. Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68). 2 Includes any beginning of year adjustment 3 Includes one year's payroll growth using 2.80% payroll growth assumption for fiscal year ended June 30, 2022; 2.75% payroll growth assumption for fiscal years ended June 30, 2018-21; 3.00% payroll growth assumption for fiscal years ended June 30, 2014-17. Notes to Schedule: Benefit Changes: There were no changes in benefits Changes of Assumptions: There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CaIPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014. 108 City of Santa Clarita Required Supplementary Information (Unaudited) Schedule of Changes in Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2023 Last Ten Fiscal Years' California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan (Continued) Measurement period 2017-18 2016-17 2015-16 2014-15 2013-14 Total pension liability Service cost $ 4,920,377 $ 4,921,221 $ 4,409,399 $ 4,418,053 $ 4,462,544 Interest 13,037,446 12,166,752 11,315,207 10,443,680 9,588,693 Changes of assumptions (1,615,911) 11,654,992 - (3,009,808) - Changes of Benefit Terms - - - Differences between expected and actual experience 1,709,604 (1,505,660) (305,665) 416,626 Benefit payments, including refunds of employee contributions (5,601,353) (4,406,046) (3,347,335) (2,971,092) (2,561,655) Net change in total pension liability 12,450,163 22,831,259 12,071,606 9,297,459 11,489,582 Total pension liability - beginning 182,588,700 159,757,441 147,685,835 138,388,376 126,898,794 Total pension liability - ending (a) $ 195,038,863 $ 182,588,700 $ 159,757,441 $ 147,685,835 $ 138,388,376 Pension fiduciary net position Contributions - employer $ 9,664,637 $ 4,484,866 $ 3,959,503 $ 3,740,145 $ 3,562,246 Contributions - employee 2,203,916 2,224,721 2,252,522 2,164,107 2,339,435 Net investment income 11,713,900 13,510,656 622,282 2,506,239 16,243,165 Benefit payments, including refunds of employee contributions (5,601,353) (4,406,046) (3,347,335) (2,971,092) (2,561,655) Net plan to plan resources movement (355) 9,685 Administrative expense (211,742) (177,534) (71,202) (131,529) Other miscellaneous income/expense' (402,101) - - - Net change in plan fiduciary net position 17,366,902 15,636,663 3,415,770 5,317,555 19,583,191 Plan fiduciary net position - beginning 135,882,204 120,245,541 116,829,771 111,512,216 91,929,025 Plan fiduciary net position - ending (b) $ 153,249,106 $ 135,882,204 $ 120,245,541 $ 116,829,771 $ 111,512,216 Plan net pension liability (asset) - ending (a) - (b) $ 41,789,757 $ 46,706,496 $ 39,511,900 $ 30,856,064 $ 26,876,160 Plan fiduciary net position as a 78.57% 74.42% 75.27% 79.11% 80.58% percentage of the total pension liability Covered payro113 $ 29,326,360 $ 28,956,876 $ 28,584,202 $ 28,017,332 $ 26,879,556 Plan net pension liability as a percentage of covered payroll 142.50% 161.30% 138.23% 110.13% 99.99% 109 City of Santa Clarita Required Supplementary Information (Unaudited) Schedule of Contributions - Pensions For the Year Ended June 30, 2024 Last Ten Fiscal Years' California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan Fiscal year Actuarially determined contribution Contributions in relation to the actuarially determined contribution Contribution deficiency (excess) Covered payroll Contributions as a percentage of covered payroll 2024 2023 2022 2021 2020 7,661,147 $ 7,123,275 $ 6,510,552 $ 6,190,238 $ 6,323,890 (9,661,147) (9,123,275) (8,462,978) (11,219,252) (15,976,871) $ (2,000,000) $ (2,000,000) $ (1,952,426) $ (5,029,014) $ (9,652,981) $ 40,290,268 $ 39,192,868 $ 36,363,784 $ 35,733,541 $ 34,033,087 23.98% 23.28% 23.27% 31.40% 46.95% Notes to Schedule: The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2023-24 were derived from the June 30, 2021 funding valuation report. Methods and assumptions used to determine contribution rates: Actuarial cost method Entry Age Actuarial Cost Method Amortization method Level percentage of payroll Asset valuation method Fair Value Assets. For details, see June 30, 2021 Funding Valuation Report. Inflation 2.30% Salary increases Varies by entry age and service Payroll Growth 2.80% Investment rate of return 6.80% Net of Pension Plan Investment and Administrative Expenses; includes inflation. Retirement age The probabilities of Retirement are based on the 2021 CAPERS Experience Study for the period from 2001 to 2019. Mortality The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre -retirement and Post -retirement mortality rates include 15 years of projected mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. 110 City of Santa Clarita Required Supplementary Information (Unaudited) Schedule of Contributions - Pensions (Continued) For the Year Ended June 30, 2024 Last Ten Fiscal Years' California Public Employees' Retirement System Defined Pension Plan - Miscellaneous Plan (Continued) Fiscal year Actuarially determined contribution Contributions in relation to the actuarially determined contribution Contribution deficiency (excess) Covered payroll Contributions as a percentage of covered payroll 2019 2018 2017 2016 2015 $ 5,637,826 $ 4,662,191 $ 4,484,140 $ 3,958,892 $ 3,740,138 (12,499,992) (9,662,191) (4,484,140) (3,958,892) (3,740,138) $ (6,862,166) $ (5,000,000) $ - $ - $ - $ 31,563,882 $ 29,326,360 $ 28,956,876 $ 28,584,202 $ 28,017,332 39.60% 32.96% 15.49% 13.85% 13.35% 111 City of Santa Clarita Required Supplementary Information (Unaudited) Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios For the Year Ended June 30, 2024 Other Postemployment Benefits ("OPEB") Plan Measurement period 2023-24 2022-23 2021-22 2020-21 2019-20 Total OPEB liability Service cost $ 975,655 $ 1,076,110 $ 1,100,210 $ 2,154,981 $ 1,610,969 Interest 2,505,023 2,646,199 2,509,052 2,517,070 2,505,286 Changes of benefit terms - - - - - Differences between expected and actual experience - (3,466,684) - (5,463,407) - Changes of assumptions - 812,693 - (17,074,375) 8,477,248 Benefit payments, including refunds of employee contributions (1,658,038) (1,455,278) (1,326,369) (1,265,682) (1,202,903) Net change in total pension liability 1,822,640 (386,960) 2,282,893 (19,131,413) 11,390,600 Total OPEB liability - beginning 41,603,747 41,990,707 39,707,814 58,839,227 47,448,627 Total OPEB liability - ending (a) $ 43,426,387 $ 41,603,747 $ 41,990,707 $ 39,707,814 $ 58,839,227 OPEB fiduciary net position Contributions - employer $ 278,000 $ 253,000 $ 301,000 $ 638,000 $ 636,000 Net investment income 5,817,416 3,955,861 (7,090,104) 10,837,685 1,475,065 Benefit payments (1,658,038) (1,455,278) (1,326,369) (1,265,682) (1,202,903) Administrative expense (110,704) (86,061) (105,845) (95,987) (77,123) Other expenses - - - - - Net change in plan fiduciary net position 4,326,674 2,667,522 (8,221,318) 10,114,016 831,039 Plan fiduciary net position - beginning 46,729,796 44,062,274 52,283,592 42,169,576 41,338,537 Plan fiduciary net position - ending (b) $ 51,056,470 $ 46,729,796 $ 44,062,274 $ 52,283,592 $ 42,169,576 Plan net OPEB liability (asset) - ending (a) - (b) $ (7,630,083) $ (5,126,049) $ (2,071,567) $ (12,575,778) $ 16,669,651 Plan fiduciary net position as a percentage 117.57% 112.32% 104.93% 131.67% 71.67% of the total OPEB liability Covered -employee payroll $ 46,573,286 $ 45,582,496 $ 41,385,678 $ 35,631,538 $ 38,295,087 Plan net OPEB liability as a percentage of covered -employee payroll -16.38% -11.25% -5.01% -35.29% 43.53% 112 City of Santa Clarita Required Supplementary Information (Unaudited) Schedule of Changes in Net Other Postemployment Benefits Liability and Related Ratios (Continued) For the Year Ended June 30, 2024 Last Ten Fiscal Years Other Postemployment Benefits ("OPEB") Plan (Continued) Measurement period Total OPEB liability Service cost Interest Changes of benefit terms Differences between expected and actual experience Changes of assumptions Benefit payments, including refunds of employee contributions Net change in total pension liability Total OPEB liability - beginning Total OPEB liability - ending (a) OPEB fiduciary net position 2018-19 2017-18 $ 1,701,975 $ 1,711,000 2,823,979 2,633,073 (7,334,973) - 2,078,284 (1,071,000) (1,093,711) (1,054,000) (1,824,446) 2,219,073 49,273,073 47,054,000 $ 47,448,627 $ 49,273,073 Contributions - employer $ 923,250 $ 1,227,000 Net investment income 2,618,633 2,963,587 Benefit payments (1,093,711) (1,054,041) Administrative expense (73,935) (146,319) Other expenses - - Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (b) Plan net OPEB liability (asset) - ending (a) - (b) Plan fiduciary net position as a percentage of the total OPEB liability Covered -employee payroll Plan net OPEB liability as a percentage of covered -employee payroll 2,374,237 2,990,227 38,964,300 35,974,073 $ 41,338,537 $ 38,964,300 $ 6,110,090 $ 10,308,773 87.12% 79.08% $ 33,895,751 $ 30,634,000 18.03% 33.65% 113 City of Santa Clarita Required Supplementary Information (Unaudited) Schedule of Contributions - Other Postemployment Benefits For the Year Ended June 30, 2024 Last Ten Fiscal Years Other Postemployment Benefits ("OPEB") Plan Fiscal year ended June 30 2024 2023 2022 2021 2020 Actuarially determined contribution (ADC) $ 273,000 $ 232,000 $ 482,000 $ 517,000 $ 1,112,000 Contributions in relation to the actuarially determined contribution 278,000 253,000 301,000 638,000 636,000 Contribution deficiency (excess) $ (5,000) $ (21,000) $ 181,000 $ (121,000) $ 476,000 Covered -employee payroll $ 46,573,286 $ 45,582,496 $ 41,385,678 $ 35,631,538 $ 38,295,087 Contributions as a percentage of covered -employee payroll 0.60% 0.56% 0.73% 1.79% 1.66% Methods and assumptions used to determine contribution rates: Contribution valuation date June 30, 2022 Actuarial cost method Entry Age Normal, level percentage of payroll Amortization method Level percentage of pay Amortization period 10-year fixed period for 2023/24 Asset valuation method Investment gains and losses spread over 5-year rolling Discount Rate 6.00% General Inflation Rate 2.50% Medical Trend Non -Medicare - 8.50% for 2024, decreasing to an ultimate rate of 3.45% in 2076 Medicare (Non -Kaiser) - 7.50% for 2024, decreasing to an ultimate rate of 3.45% in 2076 Medicare (Kaiser) - 6.25% for 2024, decreasing to an ultimate rate of 3.45% in 2076 Mortality CAPERS 2000-2019 experience study Mortality Improvement Retirement mortality projected fully generational with scale MP-2021 Note: Historical information presented is only for periods after GASB 75 implementation. 114 City of Santa Clarita Required Supplementary Information (Unaudited) Schedule of Contributions - Other Postemployment Benefits (Continued) For the Year Ended June 30, 2024 Last Ten Fiscal Years Other Postemployment Benefits ("OPEB") Plan (Continued) Fiscal year ended June 30 Actuarially determined contribution (ADC) Contributions in relation to the actuarially determined contribution Contribution deficiency (excess) Covered -employee payroll Contributions as a percentage of covered -employee payroll 2019 2018 $ 1,127,000 $ 1,755,000 923,250 1,227,000 $ 203,750 $ 528,000 $ 33,895,751 $ 30,634,000 2.72% 4.01% 115 City of Santa Clarita Required Supplementary Information (Unaudited) Schedule of Money Weighted Rate of Return - OPEB For the Year Ended June 30, 2024 Fiscal year Actual money -weighted rate of return- net of investment expense 2024 2023 2022 2021 12.85% 9.30%-13.55% 26.10% 2020 2019 2018 2017 3.78% 6.94% 8.26% 12.81% * Fiscal year 2017 was the first year of GASB 74 implementation, therefore, only eight years are shown. 116 SUPPLEMENTARY INFORMATION 117 This page intentionally left blank. 118 NONMAJOR GOVERNMENTAL FUNDS Nonmaior Special Revenue Funds: Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. Bikeway — To account for monies received from the State of California restricted for bicycle and pedestrian facilities available under Article 3 of the Transportation Development Act (SB821). Gas Tax — To account for monies received and expended from the state and county gas tax allocation restricted to fund various street highway improvements, including maintenance. Proposition A — To account for the City's share of the one-half percent (0.5%) increased sales tax in Los Angeles County as a result of "Proposition A." This revenue is restricted for transportation -related purposes. Special Assessment — To account for special assessments received for small assessment districts. These funds may be used for maintenance expenses with the districts. Street Lighting District — To account for property tax and levy of assessment receipts and disbursements related to the streetlights maintenance program. Measure M Local Return — To account for the half -cent sales tax revenue that Los Angeles County voters approved in November 2016 and is restricted to meet the transportation needs of Los Angeles County. SB1 Road Repair and Activity — To account for monies received and expended from the State SB 1 Road and Repair Rehabilitation to fund various maintenance, rehabilitations, and safety needs on streets and roads. TDA (Transportation Development Act 8) — To account for monies received from the State of California under Article 8 of the TDA. These funds are restricted for local streets and road expenditures when the City's unmet transportation needs have been Traffic Safety — To account for monies received from vehicle code fines. This fund is used to finance law enforcement expenditures. CDBG (Community Development Block Grant) — To account for Federal entitlements under the Housing and Community Development Act of 1974, as amended. The City Council annually allocates CDBG funds to various programs. AQMD (Air Quality Management District) — To account for revenues and expenditures for Air Quality Management. Stormwater — To account for monies received from assessments restricted for the use of the stormwater and run-off programs. Surface Transportation Program — To account for receipts and disbursements associated with the Surface Transportation Program restricted for construction, reconstruction, and improvement of highways and bridges on eligible Federal Aid highway routes. Bureau of Justice Assistance (BJA) Law Enforcement — To account for receipts and disbursements for the BJA law enforcement grant restricted for police department programs. Supplemental Law Grant — To account for receipts and disbursements for the supplemental law grant restricted for police department programs. HOME — To account for receipts and disbursements for the activity for the HOME grant program restricted to expand the supply of affordable housing for very low- and low-income families. Library Facilities Fees — To account for monies received from the library facilities developer fees, which are restricted for use on library facilities. 119 NONMAJOR GOVERNMENTAL FUNDS Nonmaior Special Revenue Funds (Continued): Public Education and Government (PEG) — To account for the one -percent (1%), PEG Capital Grant funds received from video service providers pursuant to the Digital Infrastructure and Video Competition Act of 2006. Proposition C — To account for the City's share of the one-half percent (0.5%) increased sales tax in Los Angeles County as a result of Proposition C. This revenue is to be used for transportation -related purposes. Measure H Homeless Initiatives Fund — To account for the one -quarter of a cent sales tax approved by Los Angeles County voters in 2017 for the specific purpose of preventing and combating homelessness and for funding homeless services and short-term housing. Federal Grants — To account for receipts and disbursements of miscellaneous federal grant monies not accounted for in other funds. These receipts are restricted for planning, design, improvements, and maintenance of streets, roads and bridges, facility construction and improvements, transit operations, and other transit -related expenditures. Measure R — To account for the half -cent sales tax revenues that Los Angeles County voters approved in November 2008 to meet the transportation needs of Los Angeles County. Measure R Highway Improvement Program — To account for the half -cent sales tax measure approved by LA County voters in November 2008 to fund carpool, highways and other highway related improvements. Measure M ATP — To account for the half -cent sales tax measure approved by LA County voters in November 2016 to fund active transportation projects throughout Los Angeles County. Measure A Safe Clean Neighborhood Parks Entitlement (Measure A Safe Parks) — The Clean Safe Neighborhood Parks and Beaches Measure was passed by the voters of Los Angeles County in November of 2016. Entitlement funds are distributed to cities on a per capital basis. The measure provides local funding from an annual parcel tax of 1.5 cents per square foot of building floor area for parks and open space. Measure W Safe Clean Water — To account for the special tax of 2.5 cents per square feet of impermeable area for parcels located in Los Angeles County Flood Control District that Los Angeles County voters approved November 2018 to pay for projects, infrastructure, and programs to capture, treat, and recycle rainwater. Tourism Marketing District — To account for receipts and disbursements associated with promoting local businesses and tourism in the City of Santa Clarita through the Tourism Marketing District. The Tourism Marketing District was formed to provide financing for public programs to attract tourist visits to areas where tourism is economically important and desired. The Tourism Marketing District was established and is levied pursuant to the Parking and Business Improvement Area Law of 1989, Part 6 of Division 18 of the California Streets and Highways Code (the 1989 Law) and the provisions of the California Constitution Article XIIID (Proposition 218). OSPD (Open Space Preservation District) — To account for monies received from special assessments for the costs of acquiring open space lands, parks, and parkland in accordance with the City's programs. Miscellaneous Grants — To account for receipts and disbursements of non-federal miscellaneous grants, which are restricted for planning, design, improvements, and maintenance of streets, roads, and bridges, facility construction and improvements, transit operations, and other transit -related expenditures. Park Dedication — This fund accounts for monies received from developers restricted to finance the acquisition and develop new parkland space. These monies are restricted under the Quimby Act by ordinance and require the dedication of land or impose a requirement of the payment of fee in lieu. 120 NONMAJOR GOVERNMENTAL FUNDS Nonmaior Special Revenue Funds (Continued): Housing Successor Agency — To account for the transactions of the Housing Successor Agency for the continuation of the low- and moderate -income programs of the former redevelopment agency. Tourism Marketing Bureau — To account for monies received from local and regional tourism -related organizations restricted for tourism and business development within the City's boundaries. Areawide — To account for receipts and disbursements for the City's Areawide Beautification Zone operations which is supported through special benefit assessments levied on individual parcels authorized by the Landscape and Lighting Act of 1972. Funds are restricted for specific use on costs associated with the maintenance of landscape, hardscape and ornamental improvements, park facilities, tree pruning, as well as utility costs such as water and electricity. As provided for by the Landscape and Lighting Act, LMD funds may also be used for the construction and/or installation of capital improvements. Cooper Street Parking Structure CFD 2020-1 — To account for special tax revenue collected for the operation and maintenance of the City owned public parking garage on Cooper Street in the Vista Canyon development area. Vista Canyon (VC) Wastewater Standby District — To account for the wastewater standby assessment and sewer rate revenues. Funds are restricted to pay for the annual maintenance and operational costs of the self- contained Recycled Water Factory. Santa Clarita Public Television Authority — To account for the operations of the Santa Clarita Public Television Authority, for which the City performs administrative functions. Developer Fees Special Revenue Fund — To account for monies received from developers restricted to fund specific projects and infrastructure maintenance throughout the City. Public Library Special Revenue Fund — To account for property tax receipts and disbursements associated with the operation of the City of Santa Clarita Public Library. American Rescue Plan Act Special Revenue Fund — To account for the American Rescue Plan Act ("ARPA") federal funding received to respond to the COVID-19 public health emergency, address negative economic impacts cause by the pandemic, replace lost revenue, and invest in infrastructure. Nonmaior Capital Proiects Funds: The Capital Projects Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditures for capital outlays, including the acquisition or construction of capital facilities and other assets. General Capital Projects — To account for major capital improvement projects not accounted for in other funds. Civic Arts Projects — To account for Civic Art Allocations which represent an amount equal to 1 percent of the eligible cost of design services and construction of City Capital Improvement Projects. If use of all, or a portion, of a project's funding is prohibited by the funding source for the purposes of the Civic Art Program, the Civic Art Allocation will reflect only that portion of the funding that is eligible for application to the City of Santa Clarita Civic Art Program. Nonmaior Debt Services Funds: The Debt Service Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditures for principal and interest. Public Financing Authority — To account for principal and interest payments for obligations issued by the Santa Clarita Public Financing Authority and bond proceeds held by the City's trustee. Budgetary control includes items restricted by the bond indentures. 121 This page intentionally left blank. 122 City of Santa Clarita Combining Balance Sheet Nonmajor Governmental Funds June 30, 2024 Special Revenue Funds Special Bikeway Gas Tax Proposition A Assessment ASSETS Cash and investments $ 286,943 $ - $ 17,269,535 $ 4,858,831 Accounts receivable, net - 2,167 - - Interest receivable 1,258 - 72,225 21,226 Taxes receivables - - - 5,733 Loans receivable - - - - Prepaid items - - - - Due from other governments - 537,123 - - Notes to RDA Successor Agency - - - - Restricted assets: Cash and investments - - - - Cash and investments with fiscal agent - - - - Total assets $ 288,201 $ 539,290 $ 17,341,760 $ 4,885,790 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 216,751 $ 286,385 $ 400 $ 43,924 Due to the Successor Agency - - - - Due to other funds - 252,905 - - Unearned revenue - - - - Total liabilities 216,751 539,290 400 43,924 Deferred Inflows of Resources Unavailable revenue - - - - Total deferred inflows of resources - - - - Fund Balances (Deficits): Nonspendable - - - - Restricted 71,450 - 17,341,360 4,841,866 Assigned - - - - Unassigned (deficits) - - - - Total fund balances (deficits) 71,450 - 17,341,360 4,841,866 Total liabilities, deferred inflows of resources and fund balances $ 288,201 $ 539,290 $ 17,341,760 $ 4,885,790 (Continued) 123 City of Santa Clarita Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2024 ASSETS Cash and investments Accounts receivable, net Interest receivable Taxes receivables Loans receivable Prepaid items Due from other governments Notes to RDA Successor Agency Restricted assets: Cash and investments Cash and investments with fiscal agent Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Due to the Successor Agency Due to other funds Unearned revenue Total liabilities Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources Fund Balances (Deficits): Nonspendable Restricted Assigned Unassigned (deficits) Total fund balances (deficits) Total liabilities, deferred inflows of resources and fund balances Special Revenue Funds Street S131 Road Lighting Measure M Repair and District Local Return Activity TDA $ 17,725,976 $ 11,911,752 $ 5,599,789 $ 1,673,138 92,823 - - - 77,708 52,219 24,549 7,420 115,516 - - - 14,879 - - - - 337,147 1,037,373 653,966 $ 18,026,902 $ 12,301,118 $ 6,661,711 $ 2,334,524 $ 735,560 $ 64,809 $ 59,548 $ 2,334,523 /JJ,JUV U`F,OV7 J7,J`FO G,JJ`F,JGJ - - - 653,966 - - - 653,966 14,879 - - - 17,276,463 12,236,309 6,602,163 - - - - (653,965) 17,291,342 12,236,309 6,602,163 (653,965) $ 18,026,902 $ 12,301,118 $ 6,661,711 $ 2,334,524 (Continued) 124 City of Santa Clarita Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2024 Special Revenue Funds Traffic Safety CDBG AQMD Stormwater ASSETS Cash and investments $ - $ - $ 558,586 $ 5,475,176 Accounts receivable, net - - - - Interest receivable - - 2,449 23,986 Taxes receivables 136,476 - - 33,677 Loans receivable - - - - Prepaid items - - - 19,649 Due from other governments - 327,465 77,601 - Notes to RDA Successor Agency - - - - Restricted assets: Cash and investments - - - - Cash and investments with fiscal agent - - - - Total assets $ 136,476 $ 327,465 $ 638,636 $ 5,552,488 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ - $ 283,415 $ 75 $ 207,660 Due to the Successor Agency - - - - Due to other funds 136,476 49,912 - - Unearned revenue - - - - Total liabilities 136,476 333,327 75 207,660 Deferred Inflows of Resources Unavailable revenue - - - - Total deferred inflows of resources - - - - Fund Balances (Deficits): Nonspendable - - - 19,649 Restricted - - 638,561 5,325,179 Assigned - - - - Unassigned (deficits) - (5,862) - - Total fund balances (deficits) - (5,862) 638,561 5,344,828 Total liabilities, deferred inflows of resources and fund balances $ 136,476 $ 327,465 $ 638,636 $ 5,552,488 (Continued) 125 City of Santa Clarita Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2024 ASSETS Cash and investments Accounts receivable, net Interest receivable Taxes receivables Loans receivable Prepaid items Due from other governments Notes to RDA Successor Agency Restricted assets: Cash and investments Cash and investments with fiscal agent Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Due to the Successor Agency Due to other funds Unearned revenue Total liabilities Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources Fund Balances (Deficits): Nonspendable Restricted Assigned Unassigned (deficits) Total fund balances (deficits) Total liabilities, deferred inflows of resources and fund balances Special Revenue Funds Surface Transportation BJA Law Supplemental Program Enforcement Law Grant HOME $ - $ 2 $ 686,221 $ 974,810 - - 3,008 4,274 - - - 1,833,632 - 697 - - $ - $ 699 $ 689,229 $ 2,812,716 $ - $ 697 $ 87,181 $ - - 697 87,181 - - 2 602,048 2,812,716 - 2 602,048 2,812,716 $ - $ 699 $ 689,229 $ 2,812,716 (Continued) 126 City of Santa Clarita Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2024 ASSETS Cash and investments Accounts receivable, net Interest receivable Taxes receivables Loans receivable Prepaid items Due from other governments Notes to RDA Successor Agency Restricted assets: Cash and investments Cash and investments with fiscal agent Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Due to the Successor Agency Due to other funds Unearned revenue Total liabilities Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources Fund Balances (Deficits): Nonspendable Restricted Assigned Unassigned (deficits) Total fund balances (deficits) Total liabilities, deferred inflows of resources and fund balances Special Revenue Funds Public Measure H Library Education and Homeless Facilities Fees Government Proposition C Initiatives $ - $ 874,635 $ 9,113,091 $ - - 3,833 39,951 - - 14,258 - - - - 983,488 110,321 $ - $ 892,726 $ 10,136,530 $ 110,321 44,463 $ 949 - - 588,149 75,396 - - 632,612 76,345 - - 506,288 - - - 506,288 - - 892,726 8,997,630 33,976 - 892,726 8,997,630 33,976 $ - $ 892,726 $ 10,136,530 $ 110,321 (Continued) 127 City of Santa Clarita Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2024 ASSETS Cash and investments Accounts receivable, net Interest receivable Taxes receivables Loans receivable Prepaid items Due from other governments Notes to RDA Successor Agency Restricted assets: Cash and investments Cash and investments with fiscal agent Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Due to the Successor Agency Due to other funds Unearned revenue Total liabilities Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources Fund Balances (Deficits): Nonspendable Restricted Assigned Unassigned (deficits) Total fund balances (deficits) Total liabilities, deferred inflows of resources and fund balances Special Revenue Funds Measure R Highway Measure M Federal Grants Measure R Improvement ATP $ 259,005 $ 8,189,107 $ - 35,900 - - 398,687 297,376 1,105,100 151,103 $ 657,692 $ 8,522,383 $ 1,105,100 $ 151,103 $ 138,583 $ 343,225 $ 667,049 $ 4,912 - - 438,074 144,727 1JO,JOJ JYJ,GGJ 1,1 VJ, 1GJ lY7,UJ7 188,444 - 1,067,677 100,724 lOO,YYY - 1,VV/,V// 1VV,/GY 330,665 8,179,158 - - - - (1,067,700) (99,260) 330,665 8,179,158 (1,067,700) (99,260) $ 657,692 $ 8,522,383 $ 1,105,100 $ 151,103 (Continued) 128 City of Santa Clarita Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2024 ASSETS Cash and investments Accounts receivable, net Interest receivable Taxes receivables Loans receivable Prepaid items Due from other governments Notes to RDA Successor Agency Restricted assets: Cash and investments Cash and investments with fiscal agent Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Due to the Successor Agency Due to other funds Unearned revenue Total liabilities Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources Fund Balances (Deficits): Nonspendable Restricted Assigned Unassigned (deficits) Total fund balances (deficits) Total liabilities, deferred inflows of resources and fund balances Special Revenue Funds Measure W Tourism Measure A Safe Clean Marketing Safe Parks Water District OSPD $ - $ 8,445,282 $ 991,115 $ 8,487,926 - - 3,150 43,108 - 37,023 4,345 37,210 - - 159,369 31,387 - - 46,251 - 3,271,781 - - - $ 3,271,781 $ 8,482,305 $ 1,204,230 $ 8,599,631 $ - $ 345,701 $ 109,157 $ 116,599 3,272,409 - - - - - 46,251 - - 8,136,604 1,048,822 8,483,032 (628) - - - (628) 8,136,604 1,095,073 8,483,032 $ 3,271,781 $ 8,482,305 $ 1,204,230 $ 8,599,631 (Continued) 129 City of Santa Clarita Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2024 ASSETS Cash and investments Accounts receivable, net Interest receivable Taxes receivables Loans receivable Prepaid items Due from other governments Notes to RDA Successor Agency Restricted assets: Cash and investments Cash and investments with fiscal agent Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Due to the Successor Agency Due to other funds Unearned revenue Total liabilities Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources Fund Balances (Deficits): Nonspendable Restricted Assigned Unassigned (deficits) Total fund balances (deficits) Total liabilities, deferred inflows of resources and fund balances Special Revenue Funds Housing Tourism Miscellaneous Park Successor Marketing Grants Dedication Agency Bureau $ 1,084,281 $ 4,739,813 $ 919,147 $ 63,646 - 20,779 4,029 279 40,504 - - - 783,676 - - - - - 213,061 - $ 1,908,461 $ 4,760,592 $ 1,136,237 $ 63,925 $ 88,131 $ 79,365 $ - $ - - - 34,479 - 1,507,138 - - - 1,595,269 79,365 34,479 - 501,481 - - 501,481 - - - 40,504 - - - - 4,681,227 1,101,758 63,925 (228,793) - - - (188,289) 4,681,227 1,101,758 63,925 $ 1,908,461 $ 4,760,592 $ 1,136,237 $ 63,925 (Continued) 130 City of Santa Clarita Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2024 ASSETS Cash and investments Accounts receivable, net Interest receivable Taxes receivables Loans receivable Prepaid items Due from other governments Notes to RDA Successor Agency Restricted assets: Cash and investments Cash and investments with fiscal agent Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Due to the Successor Agency Due to other funds Unearned revenue Total liabilities Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources Fund Balances (Deficits): Nonspendable Restricted Assigned Unassigned (deficits) Total fund balances (deficits) Total liabilities, deferred inflows of resources and fund balances Special Revenue Funds Santa Clarita Cooper St VC Public Parking Wastewater Television Areawide CFD 2020-1 Standby District Authority $ 8,400,985 $ 446,523 $ 2,539,495 $ 47 23,483 - - - 22,148 - 11,133 - 92,795 - 1,093 - $ 8,539,411 $ 446,523 $ 2,551,721 $ 47 $ 903,327 $ 459 $ 177,155 $ - 903,327 459 177,155 - 7,636,084 446,064 2,374,566 47 7,636,084 446,064 2,374,566 47 $ 8,539,411 $ 446,523 $ 2,551,721 $ 47 (Continued) 131 City of Santa Clarita Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2024 ASSETS Cash and investments Accounts receivable, net Interest receivable Taxes receivables Loans receivable Prepaid items Due from other governments Notes to RDA Successor Agency Restricted assets: Cash and investments Cash and investments with fiscal agent Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Due to the Successor Agency Due to other funds Unearned revenue Total liabilities Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources Fund Balances (Deficits): Nonspendable Restricted Assigned Unassigned (deficits) Total fund balances (deficits) Total liabilities, deferred inflows of resources and fund balances Special Revenue Funds Developer Public American Fees Library Rescue Plan $ 2,155,528 $ 7,913,929 $ 771,814 10,128 34,694 - - 235,980 - - 2,953 - 7,709,038 - - $ 9,874,694 $ 8,187,556 $ 771,814 $ - $ 380,730 $ 612,597 - - 159,217 - 380,730 771,814 - 2,953 - 9,706,532 7,803,873 - 42,684 - - 125,478 - - 9,874,694 7,806,826 - $ 9,874,694 $ 8,187,556 $ 771,814 (Continued) 132 City of Santa Clarita Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2024 ASSETS Cash and investments Accounts receivable, net Interest receivable Taxes receivables Loans receivable Prepaid items Due from other governments Notes to RDA Successor Agency Restricted assets: Cash and investments Cash and investments with fiscal agent Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Due to the Successor Agency Due to other funds Unearned revenue Total liabilities Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources Fund Balances (Deficits): Nonspendable Restricted Assigned Unassigned (deficits) Total fund balances (deficits) Total liabilities, deferred inflows of resources and fund balances Capital Projects Funds Debt Service Fund General Public Total Nonmajor Capital Civic Financing Governmental Projects Arts Projects Authority Funds $ 2,563,962 $ 233,104 $ 1,081,798 $ 136,294,992 - - - 164,731 - 1,337 - 553,111 - - - 826,284 - - - 1,833,632 - - - 124,236 - - - 10,072,904 - - - 7,709,038 - - - 213,061 - - 4,409 4,409 $ 2,563,962 $ 234,441 $ 1,086,207 $ 157,796,398 $ 1,080,952 $ 1,VOV,7JG 4,999 $ - $ 9,419,281 - - 34,479 - - 4,958,048 - - 1,666,355 4,999 - 16,078,163 - 3,018,580 - 3,018,580 - - - 124,236 - - 1,086,207 138,751,013 1,483,010 229,442 - 1,755,136 - - - (1,930,730) 1,483,010 229,442 1,086,207 138,699,655 $ 2,563,962 $ 234,441 $ 1,086,207 $ 157,796,398 (Concluded) 133 City of Santa Clarita Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2024 Special Revenue Funds Special Bikeway Gas Tax Proposition A Assessment REVENUES: Taxes $ - $ - $ - $ - Special assessments - - - 706,632 Intergovernmental 210,647 6,193,161 6,067,876 - Charges for services - - - - Investment income 6,671 2,423 497,674 192,313 Fines and forfeitures - 3,495 - - Developer fees - - Other revenue - - - - Total revenues 217,318 6,199,079 6,565,550 898,945 EXPENDITURES: Current: General government - - - - Public safety - - - - Public works - 6,021,154 - - Community development - - - - Neighborhood services - - - 389,461 Capital outlay 144,961 116,066 16,060 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total expenditures 144,961 6,137,220 16,060 389,461 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 72,357 61,859 6,549,490 509,484 OTHER FINANCING SOURCES (USES): Issuance of debt - - - - Transfers in - 19,344 794,364 17,000 Transfers out - (135,695) - (3,018) Total other financing sources (uses) - (116,351) 794,364 13,982 NET CHANGES IN FUND BALANCES 72,357 (54,492) 7,343,854 523,466 FUND BALANCES (DEFICITS): Beginning of year, as previously reported (907) 54,492 9,997,506 4,318,400 Change within financial reporting entity Major to/from nonmajor funds - - - - Fund reclassification - - - - Beginning of year, as restated (Note 19) (907) 54,492 9,997,506 4,318,400 End of year $ 71,450 $ - $ 17,341,360 $ 4,841,866 (Continued) 134 City of Santa Clarita Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2024 REVENUES: Taxes Special assessments Intergovernmental Charges for services Investment income Fines and forfeitures Developer fees Other revenue Total revenues EXPENDITURES: Current: General government Public safety Public works Community development Neighborhood services Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Issuance of debt Transfers in Transfers out Total other financing sources (uses) NET CHANGES IN FUND BALANCES FUND BALANCES (DEFICITS): Beginning of year, as previously reported Change within financial reporting entity Major to/from nonmajor funds Fund reclassification Beginning of year, as restated (Note 19) End of year Special Revenue Funds Street S131 Road Lighting Measure M Repair and District Local Return Activity TDA 6,558,646 - - - - 4,261,300 5,952,398 2,292,113 702,375 469,328 179,559 134,945 199,586 - - - 13,355 - - - 7,473,962 4,730,628 6,131,957 2,427,058 2,930,749 - - - 1,932,911 - - 12,166 677,868 2,806,110 4,703,474 5,245,576 2,806,110 41703,474 5,257,742 5,541,528 1,932,434 1,924,518 1,428,483 (2,830,684) 453,449 - - - (1,309,555) - - (19,344) (856,106) - - (19,344) 1,076,328 1,924,518 1,428,483 (2,850,028) 16,215,014 10,311,791 5,173,680 2,196,063 16,215,014 10,311,791 51173,680 2,196,063 $ 17,291,342 $ 12,236,309 $ 6,602,163 $ (653,965) (Continued) 135 City of Santa Clarita Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2024 REVENUES: Taxes Special assessments Intergovernmental Charges for services Investment income Fines and forfeitures Developer fees Other revenue Total revenues EXPENDITURES: Current: General government Public safety Public works Community development Neighborhood services Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Issuance of debt Transfers in Transfers out Total other financing sources (uses) NET CHANGES IN FUND BALANCES FUND BALANCES (DEFICITS): Beginning of year, as previously reported Change within financial reporting entity Major to/from nonmajor funds Fund reclassification Beginning of year, as restated (Note 19) End of year Special Revenue Funds Traffic Safety CDBG AQMD Stormwater - - - 4,293,030 - 1,592,584 310,263 - - - - 23,419 - - 24,199 221,669 485,796 - - - - - - 320,263 485,796 1,592,584 334,462 4,858,381 - 1,076,376 - - - - 254,317 4,371,212 - 516,208 - 174,038 - 1,592,584 254,317 4,545,250 485,796 - 80,145 313,131 - - - 3,690 (485,796) - - - (485,796) - - 3,690 - - 80,145 316,821 - (5,862) 558,416 5,028,007 - (5,862) 558,416 5,028,007 $ - $ (5,862) $ 638,561 $ 5,344,828 (Continued) 136 City of Santa Clarita Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2024 REVENUES: Taxes Special assessments Intergovernmental Charges for services Investment income Fines and forfeitures Developer fees Other revenue Total revenues EXPENDITURES: Current: General government Public safety Public works Community development Neighborhood services Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Issuance of debt Transfers in Transfers out Total other financing sources (uses) NET CHANGES IN FUND BALANCES FUND BALANCES (DEFICITS): Beginning of year, as previously reported Change within financial reporting entity Major to/from nonmajor funds Fund reclassification Beginning of year, as restated (Note 19) End of year Special Revenue Funds Surface Transportation BJA Law Supplemental Program Enforcement Law Grant HOME 1,302,000 30,568 663,145 - - - 24,710 32,674 - - - 32,025 1,302,000 30,568 687,855 64,699 - 30,568 523,088 - 1,302,000 - - - 1,302,000 10.900 10,900 (10,900) (10,900) _ 30,568 523,088 - 164,767 64,699 - 164,767 64,699 2 437,281 2,748,017 2 437,281 2,748,017 2 $ 602,048 $ 2,812,716 (Continued) 137 City of Santa Clarita Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2024 Special Revenue Funds Public Measure H Library Education and Homeless Facilities Fees Government Proposition C Initiatives REVENUES: Taxes $ - $ 315,874 $ - $ - Special assessments - - - - Intergovernmental - - 5,491,557 323,310 Charges for services - - - - Investment income - 30,141 395,289 - Fines and forfeitures - - - - Developer fees - - - Other revenue - - - - Total revenues - 346,015 5,886,846 323,310 EXPENDITURES: Current: General government - 220,818 - - Public safety - - - - Public works - - - - Community development - - - 266,560 Neighborhood services - - - - Capital outlay - - 4,209,739 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total expenditures - 220,818 4,209,739 266,560 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES - 125,197 1,677,107 56,750 OTHER FINANCING SOURCES (USES): Issuance of debt - - - - Transfers in - - - - Transfers out (1,544,866) - - - Total other financing sources (uses) (1,544,866) - - - NET CHANGES IN FUND BALANCES (1,544,866) 125,197 1,677,107 56,750 FUND BALANCES (DEFICITS): Beginning of year, as previously reported 4,274,301 767,529 7,320,523 (22,774) Change within financial reporting entity Major to/from nonmajor funds - - - - Fund reclassification (2,729,435) - - - Beginning of year, as restated (Note 19) 1,544,866 767,529 7,320,523 (22,774) End of year $ - $ 892,726 $ 8,997,630 $ 33,976 (Continued) 138 City of Santa Clarita Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2024 Special Revenue Funds Measure R Highway Measure M Federal Grants Measure R Improvement ATP REVENUES: Taxes $ - $ - $ - $ - Special assessments - - - - Intergovernmental 1,674,599 3,773,691 507,644 272,515 Charges for services - - - - Investment income - 324,752 - - Fines and forfeitures - - - - Developer fees - Other revenue - - - - Total revenues 1,674,599 4,098,443 507,644 272,515 EXPENDITURES: Current: General government - - - - Public safety - - - - Public works - - - - Community development - - - - Neighborhood services - - - - Capital outlay 1,608,443 3,280,480 953,377 89,453 Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total expenditures 1,608,443 3,280,480 953,377 89,453 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 66,156 817,963 (445,733) 183,062 OTHER FINANCING SOURCES (USES): Issuance of debt - - - - Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - NET CHANGES IN FUND BALANCES 66,156 817,963 (445,733) 183,062 FUND BALANCES (DEFICITS): Beginning of year, as previously reported 264,509 7,361,195 (621,967) (282,322) Change within financial reporting entity Major to/from nonmajor funds - - - - Fund reclassification - - - - Beginning of year, as restated (Note 19) 264,509 7,361,195 (621,967) (282,322) End ofyear $ 330,665 $ 8,179,158 $ (1,067,700) $ (99,260) (Continued) 139 City of Santa Clarita Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2024 REVENUES: Taxes Special assessments Intergovernmental Charges for services Investment income Fines and forfeitures Developer fees Other revenue Total revenues EXPENDITURES: Current: General government Public safety Public works Community development Neighborhood services Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Issuance of debt Transfers in Transfers out Total other financing sources (uses) NET CHANGES IN FUND BALANCES FUND BALANCES (DEFICITS): Beginning of year, as previously reported Change within financial reporting entity Major to/from nonmajor funds Fund reclassification Beginning of year, as restated (Note 19) End of year Special Revenue Funds Measure W Tourism Measure A Safe Clean Marketing $ - $ 3,235,579 $ - $ - - - - 3,291,708 3,491,084 - - - - - 1,006,064 6,273 - 324,120 46,693 305,871 - - - 2,500 3,491,084 3,559,699 1,052,757 3,606,352 - - 878,119 - - 170,403 - 1,197,868 1,777 1,810,606 - 26,051 1,981,009 1,777 878,119 1,223,919 3,489,307 1,578,690 174,638 2,382,433 (224,209) - - (818,246) (224,209) - - (818,246) 3,265,098 1,578,690 174,638 1,564,187 (3,265,726) 6,557,914 920,435 6,918,845 6,557,914 (3,265,726) 920,435 6,918,845 $ (628) $ 8,136,604 $ 1,095,073 $ 8,483,032 (Continued) 140 City of Santa Clarita Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2024 Special Revenue Funds Housing Tourism Miscellaneous Park Successor Marketing Grants Dedication Agency Bureau REVENUES: Taxes $ - $ - $ - $ - Special assessments - - - - Intergovernmental 1,521,659 - - - Charges for services - - - 51298 Investment income - 106,727 50,501 2,771 Fines and forfeitures - - - - Developer fees - 3,606,957 - Other revenue - - - - Total revenues 1,521,659 3,713,684 50,501 8,069 EXPENDITURES: Current: General government - - - - Public safety - - - - Public works - - - - Community development 403,229 - - 7,237 Neighborhood services 227,791 - - - Capital outlay 250,833 786,521 250,000 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total expenditures 881,853 786,521 250,000 7,237 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 639,806 2,927,163 (199,499) 832 OTHER FINANCING SOURCES (USES): Issuance of debt - - - - Transfers in - - 160,747 - Transfers out - - - - Total other financing sources (uses) - - 160,747 - NET CHANGES IN FUND BALANCES 639,806 2,927,163 (38,752) 832 FUND BALANCES (DEFICITS): Beginning of year, as previously reported (828,095) 1,754,064 1,140,510 63,093 Change within financial reporting entity Major to/from nonmajor funds - - - - Fund reclassification - - - - Beginning of year, as restated (Note 19) (828,095) 1,754,064 1,140,510 63,093 End of year $ (188,289) $ 4,681,227 $ 1,101,758 $ 63,925 (Continued) 141 City of Santa Clarita Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2024 Special Revenue Funds Santa Clarita Cooper St VC Public Parking Wastewater Television Areawide CFD 2020-1 Standby District Authority REVENUES: Taxes $ - $ - $ - $ - Special assessments 8,344,713 198,687 539,250 - Intergovernmental - - - 342,021 Charges for services - - - - Investment income 83,799 - 135,224 1,147 Fines and forfeitures 69,849 - - - Developer fees - - - Other revenue - - 1 - Total revenues 8,498,361 198,687 674,475 343,168 EXPENDITURES: Current: General government 6,138,573 - 8,092 269,755 Public safety - - - - Public works - - - - Community development - - - - Neighborhood services 14,785,650 131,981 754,431 - Capital outlay 441,805 - - 175,306 Debt service: Principal retirement - - - 73,367 Interest and fiscal charges - - - 96 Total expenditures 21,366,028 131,981 762,523 518,524 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (12,867,667) 66,706 (88,048) (175,356) OTHER FINANCING SOURCES (USES): Issuance of debt - - - 175,306 Transfers in 13,657,092 - - - Transfers out - - - - Total other financing sources (uses) 13,657,092 - - 175,306 NET CHANGES IN FUND BALANCES 789,425 66,706 (88,048) (50) FUND BALANCES (DEFICITS): Beginning of year, as previously reported 6,846,659 379,358 2,462,614 97 Change within financial reporting entity Major to/from nonmajor funds - - - - Fund reclassification - - - - Beginning of year, as restated (Note 19) 6,846,659 379,358 2,462,614 97 End of year $ 7,636,084 $ 446,064 $ 2,374,566 $ 47 (Continued) 142 City of Santa Clarita Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2024 Special Revenue Funds Developer Public American Fees Library Rescue Plan REVENUES: Taxes $ - $ 10,214,896 $ - Special assessments - - - Intergovernmental - - 6,309,485 Charges for services - 373,255 - Investment income 288,825 238,146 - Fines and forfeitures - - - Developer fees 3,581 - Other revenue 189,597 134,915 - Total revenues 482,003 10,961,212 6,309,485 EXPENDITURES: Current: General government - - 211,672 Public safety - - - Public works - - - Community development - - 11,656 Neighborhood services 9,820 8,277,845 13,474 Capital outlay 100,622 243,631 6,072,683 Debt service: Principal retirement - 196,717 - Interest and fiscal charges - 4,763 - Total expenditures 110,442 8,722,956 6,309,485 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 371,561 2,238,256 - OTHER FINANCING SOURCES (USES): Issuance of debt - 161,411 Transfers in - - - Transfers out (1,042,563) - - Total other financing sources (uses) (1,042,563) 161,411 - NET CHANGES IN FUND BALANCES (671,002) 2,399,667 - FUND BALANCES (DEFICITS): Beginning of year, as previously reported - - - Change within financial reporting entity Major to/from nonmajor funds 12,105,435 5,407,159 - Fund reclassification (1,559,739) - - Beginning of year, as restated (Note 19) 10,545,696 5,407,159 - End of year $ 9,874,694 $ 7,806,826 $ - (Continued) 143 City of Santa Clarita Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2024 REVENUES: Taxes Special assessments Intergovernmental Charges for services Investment income Fines and forfeitures Developer fees Other revenue Total revenues EXPENDITURES: Current: General government Public safety Public works Community development Neighborhood services Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Issuance of debt Transfers in Transfers out Total other financing sources (uses) NET CHANGES IN FUND BALANCES FUND BALANCES (DEFICITS): Beginning of year, as previously reported Change within financial reporting entity Major to/from nonmajor funds Fund reclassification Beginning of year, as restated (Note 19) End of year Capital Projects Funds Debt Service Fund General Public Total Nonmajor Capital Civic Financing Governmental Projects Arts Projects Authority Funds $ - $ - $ - $ 13,766,349 - - - 23,932,666 - - - 52,583,620 - - - 1,414,309 - 13,241 5,559 4,841,346 - - - 758,726 - - - 3,610,538 - - - 692,656 - 13,241 5,559 101,600,210 - - - 9,779,659 - - - 553,656 - - - 7,966,231 - - - 2,643,177 - - - 30,584,253 3,770,166 14,999 - 39,788,853 - - 2,755,000 3,025,084 - - 3,186,146 3,191,005 3,770,166 14,999 5,941,146 97,531,918 (3,770,166) (1,758) (5,935,587) 4,068,292 - - - 336,717 2,372,894 - 5,913,043 23,402,523 - (71,840) - (5,655,132) 2,372,894 (71,840) 5,913,043 18,084,108 (1,397,272) (73,598) (22,544) 22,152,400 2,880,282 303,040 1,108,751 103,323,835 - - - 17,512,594 - - - (4,289,174) 2,880,282 303,040 1,108,751 116,547,255 $ 1,483,010 $ 229,442 $ 1,086,207 $ 138,699,655 (Concluded) 144 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Bikeway Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Intergovernmental $ 160,000 $ 434,238 $ 210,647 $ (223,591) Investment earnings - - 6,671 6,671 Total revenues 160,000 434,238 217,318 (216,920) EXPENDITURES: Capital improvement projects 160,000 571,116 144,961 426,155 Total expenditures 160,000 571,116 144,961 426,155 NET CHANGE IN FUND BALANCE $ - $ (136,878) 72,357 $ 209,235 FUND BALANCE: Beginning of year (907) End of year $ 71,450 145 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Gas Tax Special Revenue Fund For the Year Ended June 30, 2024 REVENUES: Intergovernmental Investment earnings Fines and forfeitures Total revenues EXPENDITURES: Operating: Personnel Operations and maintenance Capital outlay Capital improvement projects Total expenditures Original Final Budget Budget $ 6,444,160 6,444,160 Actual Variance with Final Budget 6,106,668 $ 6,193,161 $ 86,493 - 2,423 2,423 - 3,495 3,495 6,106,668 6,199,079 92,411 2,874,301 2,843,896 2,611,178 232,718 3,152,764 3,181,536 3,143,763 37,773 44,254 266,213 266,213 - - 132,115 116,066 16,049 6,071,319 6,423,760 6,137,220 286,540 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 372,841 (317,092) 61,859 378,951 OTHER FINANCING SOURCES (USES): Transfers in Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year - 344,596 19,344 (325,252) (115,760) (135,695) (135,695) - (115,760) 208,901 (116,351) (325,252) $ 257,081 $ (108,191) (54,492) $ 53,699 54,492 146 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Proposition A Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Intergovernmental Investment earnings Total revenues EXPENDITURES: Capital improvement projects Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year $ 6,613,578 $ 6,196,301 $ 6,067,876 $ (128,425) 344,083 344,083 497,674 153,591 6,957,661 6,540,384 6,565,550 25,166 878,188 16,060 862,128 878,188 16,060 862,128 6,957,661 5,662,196 6,549,490 887,294 - 101,144 794,364 693,220 - (767,966) - 767,966 - (666,822) 794,364 1,461,186 $ 6,957,661 $ 4,995,374 7,343,854 $ 2,348,480 9,997,506 $ 17,341,360 147 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Special Assessment Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Special assessments $ 725,428 $ 725,428 $ 706,632 $ (18,796) Investment earnings 118,043 118,043 192,313 74,270 Total revenues 843,471 843,471 898,945 55,474 EXPENDITURES: Operating: Personnel 63,391 64,021 61,409 2,612 Operations and maintenance 362,409 477,340 327,156 150,184 Capital outlay 896 896 896 - Total expenditures 426,696 542,257 389,461 152,796 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 416,775 301,214 509,484 208,270 OTHER FINANCING SOURCES (USES): Transfers in 17,000 17,000 17,000 - Transfers out (2,780) (3,153) (3,018) 135 Total other financing sources (uses) 14,220 13,847 13,982 135 NET CHANGE IN FUND BALANCE $ 430,995 $ 315,061 523,466 $ 208,405 FUND BALANCE: Beginning of year 4,318,400 End of year $ 4,841,866 148 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Street Lighting District Special Revenue Fund For the Year Ended June 30, 2024 REVENUES: Special assessments Investment earnings Fines and forfeitures Other revenues Total revenues EXPENDITURES: Operating: Personnel Operations and maintenance Capital outlay Capital improvement projects Total expenditures Original Final Budget Budget $ 6,432,953 $ 6,432,953 432,628 432,628 525,000 525,000 2,500 2,500 7,393,081 7,393,081 Actual Variance with Final Budget $ 6,558,646 $ 125,693 702,375 269,747 199,586 (325,414) 13,355 10,855 7,473,962 80,881 373,220 389,874 346,961 42,913 4,611,440 4,690,231 4,511,299 178,932 5,400 5,400 5,400 - 700,000 700,000 677,868 22,132 5,690,060 5,785,505 5,541,528 243,977 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 1,703,021 1,607,576 1,932,434 324,858 OTHER FINANCING SOURCES (USES): Transfers in Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year 270,635 453,449 (1,131,291) (1,314105) (860,656) (860,656) $ 842,365 $ 746,920 453,449 - (1,309,555) 4,550 (856,106) 4,550 1,076,328 $ 329,408 16,215,014 $ 17,291,342 149 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure M Local Return Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Intergovernmental $ 4,662,921 $ 4,346,753 $ 4,261,300 $ (85,453) Investment earnings - - 469,328 469,328 Total revenues 4,662,921 4,346,753 4,730,628 383,875 EXPENDITURES: Capital improvement projects 2,617,971 7,781,897 2,806,110 4,975,787 Total expenditures 2,617,971 7,781,897 2,806,110 4,975,787 NET CHANGE IN FUND BALANCE $ 2,044,950 $ (3,435,144) 1,924,518 $ 5,359,662 FUND BALANCE: Beginning of year 10,311,791 End of year $ 12,236,309 150 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual SB1 Road Repair and Activity Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Intergovernmental $ 5,661,305 $ 5,549,394 $ 5,952,398 $ 403,004 Investment earnings - - 179,559 179,559 Total revenues 5,661,305 5,549,394 6,131,957 582,563 EXPENDITURES: Capital improvement projects 5,661,305 10,618,133 4,703,474 5,914,659 Total expenditures 5,661,305 10,618,133 4,703,474 5,914,659 NET CHANGE IN FUND BALANCE $ - $ (5,068,739) 1,428,483 $ 6,497,222 FUND BALANCE: Beginning of year 5,173,680 End of year $ 6,602,163 151 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Transportation Development Act 8 (TDA) Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Intergovernmental Investment earnings Total revenues EXPENDITURES: Capital improvement projects Total expenditures $ 17,779,096 $ 13,138,184 $ 2,292,113 $ (10,846,071) - - 134,945 134,945 17,779,096 13,138,184 2,427,058 (10,711,126) 17,529,097 27,249,786 5,257,742 21,992,044 17,529,097 27,249,786 5,257,742 21,992,044 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 249,999 (14,111,602) (2,830,684) 11,280,918 OTHER FINANCING (USES): Transfers out Total other financing (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year $ 249,999 (344,596) (19,344) 325,252 (344,596) (19,344) 325,252 $ (14,456,198) (2,850,028) $ 11,606,170 2,196,063 $ (653,965) 152 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Traffic Safety Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Fines and forfeitures $ 550,000 $ 550,000 $ 485,796 $ (64,204) Total revenues 550,000 550,000 485,796 (64,204) OTHER FINANCING (USES): Transfers out (550,000) (550,000) (485,796) 64,204 Total other financing (uses) (550,000) (550,000) (485,796) 64,204 NET CHANGE IN FUND BALANCE $ - $ - - $ - FUND BALANCE: Beginning of year - End of year $ - 153 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Community Development Block Grant Special Revenue Fund For the Year Ended June 30, 2024 REVENUES: Intergovernmental Total revenues EXPENDITURES: Operating: Personnel Operations and maintenance Capital improvement projects Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Original Final Budget Budget Actual Variance with Final Budget $ 2,854,021 $ 2,472,498 $ 1,592,584 $ (879,914) 2,854,021 2,472,498 1,592,584 (879,914) 183,698 183,646 194,221 (10,575) 1,000,354 1,004,260 882,155 122,105 1,478,181 2,706,356 516,208 2,190,148 2,662,233 3,894,262 1,592,584 2,301,678 $ 191,788 $ (1,421,764) (5,862) $ (5,862) $ 1,421,764 154 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Air Quality Management District (AQMD) Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Intergovernmental $ 289,000 $ 289,000 $ 310,263 $ 21,263 Investment earnings 7,603 7,603 24,199 16,596 Total revenues 296,603 296,603 334,462 37,859 EXPENDITURES: Operating: Operations and maintenance 22,216 19,483 16,658 2,825 Capital outlay 325,000 565,391 237,659 327,732 Total expenditures 347,216 584,874 254,317 330,557 NET CHANGE IN FUND BALANCE $ (50,613) $ (288,271) 80,145 $ 368,416 FUND BALANCE: Beginning of year 558,416 End of year $ 638,561 155 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Stormwater Special Revenue Fund For the Year Ended June 30, 2024 REVENUES: Special assessments Charges for services Investment earnings Other revenues Total revenues EXPENDITURES: Operating: Personnel Operations and maintenance Capital outlay Capital improvement projects Total expenditures Original Final Budget Budget $ 4,360,745 $ 4,360,745 19,700 19,700 91,077 91,077 327,179 327,179 4,798,701 4,798,701 1,563,145 3,005,388 24,930 221,507 1,564,306 4,066,798 24,930 408,895 Actual Variance with Final Budget $ 4,293,030 $ (67,715) 23,419 3,719 221,669 130,592 320,263 (6,916) 4,858,381 59,680 1,465,111 99,195 2,881,171 1,185,627 24,930 - 174,038 234,857 4,814,970 6,064,929 4,545,250 1,519,679 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (16,269) (1,266,228) 313,131 1,579,359 OTHER FINANCING SOURCES: Transfers in Total other financing sources NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year 3,690 3,690 3,690 3,690 3,690 3,690 $ (12,579) $ (1,262,538) 316,821 $ 1,579,359 5,028,007 $ 5,344,828 156 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Surface Transportation Program Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Intergovernmental Total revenues EXPENDITURES: Capital improvement projects Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES: Transfers in Total other financing sources NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year - $ 1,302,000 $ 1,302,000 $ - 1,302,000 1,302,000 - 1,301,580 1,302,000 (420) - 1,301,580 1,302,000 (420) - 420 - 420 - 10,480 10,900 (420) - 10,480 10,900 (420) - $ 10,900 10,900 $ - (10,900) 157 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual BJA Law Enforcement Special Revenue Fund For the Year Ended June 30, 2024 REVENUES: Intergovernmental Total revenues EXPENDITURES: Operating: Operations and maintenance Total expenditures 10aY1[iJ1EW101BeWeI111011: A1/Vray FUND BALANCE: Beginning of year End of year Original Final Budget Budget Actual Variance with Final Budget - $ 30,580 $ 30,568 $ (12) - 30,580 30,568 (12) - 30,580 30,568 - 30,580 30,568 2 $ 2 12 12 158 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Supplemental Law Grant Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Intergovernmental $ 353,814 $ 585,563 $ 663,145 $ 77,582 Investment earnings - - 24,710 24,710 Total revenues 353,814 585,563 687,855 102,292 EXPENDITURES: Operating: Operations and maintenance 554,927 554,927 523,088 31,839 Total expenditures 554,927 554,927 523,088 31,839 NET CHANGE IN FUND BALANCE $ (201,113) $ 30,636 164,767 $ 134,131 FUND BALANCE: Beginning of year 437,281 End of year $ 602,048 159 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual HOME Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Investment earnings $ 18,076 $ 18,076 $ 32,674 $ 14,598 Other revenue - - 32,025 32,025 Total revenues NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year 18,076 18,076 64,699 46,623 $ 18,076 $ 18,076 64,699 $ 46,623 2,748,017 $ 2,812,716 160 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Library Facilities Fees Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Investment earnings $ 116,014 $ 116,014 $ - $ (116,014) Developer fees 200,000 - - - Total revenues EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING (USES): Transfers out Total other financing (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year, as previously reported Change within financial reporting entity Fund Classification Beginning of year, as restated (Note 19) End of year 316,014 116,014 316,014 116,014 - (116,014) - (116,014) - (1,544,866) (1,544,866) - - (1,544,866) (1,544,866) - $ 316,014 $ (1,428,852) (1,544,866) $ (116,014) 4,274,301 (2,729,435) 1,544,866 161 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Public Education and Government Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Taxes $ 450,000 $ 450,000 $ 315,874 $ (134,126) Investment earnings 30,425 30,425 30,141 (284) Total revenues 480,425 480,425 346,015 (134,410) EXPENDITURES: Operating: Operations and maintenance 233,116 263,116 220,818 42,298 Total expenditures 233,116 263,116 220,818 42,298 NET CHANGE IN FUND BALANCE $ 247,309 $ 217,309 125,197 $ (92,112) FUND BALANCE: Beginning of year 767,529 End of year $ 892,726 162 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Proposition C Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Intergovernmental Investment earnings Total revenues EXPENDITURES: Capital improvement projects Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year $ 6,424,663 $ 6,124,854 $ 5,491,557 $ (633,297) - - 395,289 395,289 6,424,663 6,124,854 5,886,846 (238,008) 1,500,000 7,969,543 4,209,739 3,759,804 1,500,000 7,969,543 4,209,739 3,759,804 $ 4,924,663 $ (1,844,689) 1,677,107 $ 3,521,796 7,320,523 $ 8,997,630 163 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure H Homeless Initiatives Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Intergovernmental $ - $ 323,310 $ 323,310 $ - Total revenues - 323,310 323,310 - EXPENDITURES: Operating: Personnel - 19,360 19,177 183 Operations and maintenance - 247,383 247,383 - Total expenditures - 266,743 266,560 183 NET CHANGE IN FUND BALANCE $ - $ 56,567 56,750 $ 183 FUND BALANCE: Beginning of year (22,774) End of year $ 33,976 164 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Federal Grants Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Intergovernmental Total revenues EXPENDITURES: Capital improvement projects Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year $ 3,033,460 $ 3,798,656 $ 1,674,599 $ (2,124,057) 3,033,460 3,798,656 1,674,599 (2,124,057) 3,033,460 4,952,222 1,608,443 3,343,779 3,033,460 4,952,222 1,608,443 3,343,779 $ - $ (1,153,566) 66,156 $ 1,219,722 264,509 $ 330,665 165 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure R Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Intergovernmental $ 4,114,342 $ 3,853,261 $ 3,773,691 $ (79,570) Investment earnings - - 324,752 324,752 Total revenues 4,114,342 3,853,261 4,098,443 245,182 EXPENDITURES: Capital improvement projects 6,570,724 11,088,682 3,280,480 7,808,202 Total expenditures 6,570,724 11,088,682 3,280,480 7,808,202 NET CHANGE IN FUND BALANCE $ (2,456,382) $ (7,235,421) 817,963 $ 8,053,384 FUND BALANCE: Beginning of year 7,361,195 End of year $ 8,179,158 166 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure R Highway Improvement Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Intergovernmental Total revenues EXPENDITURES: Capital improvement projects Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year $ 20,065,000 $ 20,851,232 $ 507,644 $ (20,343,588) 20,065,000 20,851,232 507,644 (20,343,588) 20,065,000 20,438,660 953,377 19,485,283 20,065,000 20,438,660 953,377 19,485,283 $ - $ 412,572 (445,733) $ (858,305) (621,967) $ (1,067,700) 167 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure M ATP Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Intergovernmental Total revenues EXPENDITURES: Capital improvement projects Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year $ 297,582 $ 1,594,247 $ 272,515 $ (1,321,732) 297,582 1,594,247 272,515 (1,321,732) 297,582 1,354,035 89,453 1,264,582 297,582 1,354,035 89,453 1,264,582 $ - $ 240,212 183,062 $ (57,150) (282,322) $ (99,260) 168 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure A Safe Parks Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Intergovernmental Total revenues EXPENDITURES: Capital improvement projects Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING (USES): Transfers out Total other financing (uses) NET CHANGE IN FUND BALANCE $ 204,144 $ 3,489,934 $ 3,491,084 $ 1,150 204,144 3,489,934 3,491,084 1,150 - 1,777 1,777 - 1,777 1,777 204,144 3,488,157 3,489,307 (194,251) (224,209) (224,209) (194,251) (224,209) (224,209) $ 9,893 $ 3,263,948 3,265,098 FUND BALANCE: Beginning of year (3,265,726) End of year $ (628) 169 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Measure W Safe Clean Water Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Taxes $ 3,214,929 $ 3,214,929 $ 3,235,579 $ 20,650 Investment earnings 98,829 98,829 324,120 225,291 Total revenues 3,313,758 3,313,758 3,559,699 245,941 EXPENDITURES: Operating: Personnel 160,134 149,981 125,107 24,874 Operations and maintenance 41,510 43,510 43,510 - Capital outlay 1,786 1,786 1,786 - Capital improvement projects 525,000 3,815,579 1,810,606 2,004,973 Total expenditures 728,430 4,010,856 1,981,009 2,029,847 NET CHANGE IN FUND BALANCE $ 2,585,328 $ (697,098) 1,578,690 $ 2,275,788 FUND BALANCE: Beginning of year 6,557,914 End of year $ 8,136,604 170 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Tourism Marketing District Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Charges for services $ 900,000 $ 950,000 $ 1,006,064 $ 56,064 Investment earnings 25,267 25,267 46,693 21,426 Total revenues 925,267 975,267 1,052,757 77,490 EXPENDITURES: Operating: Personnel 36,328 53,258 53,258 - Operations and maintenance 634,045 843,115 824,861 18,254 Total expenditures 670,373 896,373 878,119 18,254 NET CHANGE IN FUND BALANCE $ 254,894 $ 78,894 174,638 $ 95,744 FUND BALANCE: Beginning of year 920,435 End of year $ 1,095,073 171 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Open Space Preservation District (OSPD) Special Revenue Fund For the Year Ended June 30, 2024 REVENUES: Special assessments Charges for services Investment earnings Other revenues Total revenues EXPENDITURES: Operating: Personnel Operations and maintenance Capital outlay Capital improvement projects Total expenditures Original Final Budget Budget Actual Variance with Final Budget $ 3,267,232 $ 3,267,232 $ 3,291,708 $ 24,476 87,000 87,000 6,273 (80,727) 201,667 201,667 305,871 104,204 - - 2,500 2,500 3,555,899 3,555,899 3,606,352 50,453 516,306 524,467 481,855 42,612 515,002 768,021 709,314 58,707 6,699 227,949 32,750 195,199 - 68,445 - 68,445 1,038,007 1,588,882 1,223,919 364,963 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 2,517,892 1,967,017 2,382,433 415,416 OTHER FINANCING (USES): Transfers out Total other financing (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year (825,006) (825,006) (818,246) 6,760 (825,006) (825,006) (818,246) 6,760 $ 1,692,886 $ 1,142,011 1,564,187 $ 422,176 6,918,845 $ 8,483,032 172 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Miscellaneous Grants Special Revenue Fund For the Year Ended June 30, 2024 REVENUES: Intergovernmental Total revenues EXPENDITURES: Operating: Personnel Operations and maintenance Capital improvement projects Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Original Final Budget Budget Actual Variance with Final Budget $ 171,734 $ 4,015,240 $ 1,521,659 $ (2,493,581) 171,734 4,015,240 1,521,659 (2,493,581) 19,864 82,370 102,234 69,500 80,800 78,794 2,006 630,470 552,226 78,244 1,521,163 250,833 1,270,330 2,232,433 881,853 1,350,580 1,782,807 639,806 (1,143,001) (828,095) $ (188,289) 173 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Park Dedication Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Investment earnings $ 6,740 $ 6,740 $ 106,727 $ 99,987 Developer fees - 3,591,751 3,606,957 15,206 Total revenues 6,740 3,598,491 3,713,684 115,193 EXPENDITURES: Capital improvement projects 550,000 1,694,532 786,521 908,011 Total expenditures 550,000 1,694,532 786,521 908,011 NET CHANGE IN FUND BALANCE $ (543,260) $ 1,903,959 2,927,163 $ 1,023,204 FUND BALANCE: Beginning of year 1,754,064 End of year $ 4,681,227 174 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Housing Successor Agency Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Investment earnings Total revenues EXPENDITURES: Capital improvement projects Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES: Transfers in Total other financing sources NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year - $ 50,501 $ 50,501 - 50,501 50,501 250,000 250,000 250,000 - 250,000 250,000 250,000 - (250,000) (250,000) (199,499) 50,501 - - 160,747 160,747 - - 160,747 160,747 $ (250,000) $ (250,000) (38,752) $ 211,248 1,140,510 $ 1,101,758 175 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Tourism Marketing Bureau Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Charges for services $ 8,000 $ 8,000 $ 5,298 $ (2,702) Investment earnings - - 2,771 2,771 Total revenues EXPENDITURES: Operating: Operations and maintenance Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year 8,000 8,000 8,069 69 8,780 8,780 7,237 1,543 8,780 8,780 7,237 1,543 $ (780) $ (780) 832 $ 1,612 63,093 $ 63,925 176 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Areawide Special Revenue Fund For the Year Ended June 30, 2024 REVENUES: Special assessments Investment earnings Fines and forfeitures Total revenues EXPENDITURES: Operating: Personnel Operations and maintenance Capital outlay Capital improvement projects Total expenditures Original Final Budget Budget $ 8,361,185 125,684 8,486,869 $ 8,361,185 125,684 8,486,869 Actual Variance with Final Budget $ 8,344,713 $ (16,472) 83,799 (41,885) 69,849 69,849 8,498,361 11,492 6,813,246 6,670,322 6,237,871 432,451 14,243,808 14,537,631 13,938,530 599,101 876,686 1,040,361 1,020,964 19,397 3,002,138 3,383,539 168,663 3,214,876 24,935,878 25,631,853 21,366,028 4,265,825 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (16,449,009) (17,144,984) (12,867,667) 4,277,317 OTHER FINANCING SOURCES (USES): Transfers in Transfers out Total other financing sources (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year 14,293,082 14,371,278 13,657,092 (714,186) 14,293,082 14,371,278 13,657,092 (714,186) $ (2,155,927) $ (2,773,706) 789,425 $ 3,563,131 6,846,659 $ 7,636,084 177 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Cooper Street Parking Structure CFD 2020 Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Special assessments $ 446,057 $ 446,057 $ 198,687 $ (247,370) Total revenues 446,057 446,057 198,687 (247,370) EXPENDITURES: Operating: Operations and maintenance 373,386 375,021 131,981 243,040 Total expenditures 373,386 375,021 131,981 243,040 NET CHANGE IN FUND BALANCE $ 72,671 $ 71,036 66,706 $ (4,330) FUND BALANCE: Beginning of year 379,358 End of year $ 446,064 178 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Developer Fees Special Revenue Fund For the Year Ended June 30, 2024 REVENUES: Investment earnings Developer fees Other revenues Total revenues EXPENDITURES: Operating: Operations and maintenance Capital outlay Capital improvement projects Total expenditures Original Final Budget Budget $ 67,328 880,000 947,328 $ 67,328 880,000 947,328 Actual Variance with Final Budget $ 288,825 $ 221,497 3,581 (876,419) 189,597 189,597 482,003 (465,325) 9,500 284,500 9,820 274,680 7,000 7,000 7,000 - 3,663,566 1,086,212 93,622 992,590 3,680,066 1,377,712 110,442 1,267,270 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (2,732,738) (430,384) OTHER FINANCING (USES): Transfers in Transfers out Total other financing (uses) NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year, as previously reported Change within financial reporting entity Major to/from nonmajor funds Fund reclassification Beginning of year, as restated (Note 19) End of year (58,000) (58,000) $ (2,790,738) $ (430,384) 371,561 801,945 (1,042,563) (1,042,563) (1,042,563) (1,042,563) (671,002) $ (240,618) 12,105,435 (1,559,739) 10,545,696 $ 9,874,694 179 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Vista Canyon (VC) Wastewater Standby District Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Special assessments $ 1,035,513 $ 1,035,513 $ 539,250 $ (496,263) Investment earnings 138,564 138,564 135,224 (3,340) Other revenue - - 1 1 Total revenues 1,174,077 1,174,077 674,475 (499,602) EXPENDITURES: Operating: Operations and maintenance 32,087 1,589,064 762,523 826,541 Total expenditures 32,087 1,589,064 762,523 826,541 NET CHANGE IN FUND BALANCE $ 1,141,990 $ (414,987) (88,048) $ 326,939 FUND BALANCE: Beginning of year 2,462,614 End of year $ 2,374,566 180 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Public Library Special Revenue Fund For the Year Ended June 30, 2024 REVENUES: Taxes Charges for services Investment earnings Other revenues Total revenues EXPENDITURES: Operating: Personnel Operations and maintenance Capital outlay Capital improvement projects Total expenditures Original Final Budget Budget Actual Variance with Final Budget $ 9,522,404 $ 10,000,000 $ 10,214,896 $ 214,896 408,085 408,085 373,255 (34,830) 126,213 126,213 238,146 111,933 79,548 96,793 134,915 38,122 10,136,250 10,631,091 10,961,212 330,121 5,385,101 5,073,299 4,809,754 263,545 3,446,941 3,740,059 3,591,619 148,440 77,952 77,952 239,363 (161,411) 92,200 132,906 82,220 50,686 9,002,194 9,024,216 8,722,956 301,260 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 1,134,056 1,606,875 2,238,256 (631,381) OTHER FINANCING SOURCES: Issuance of debt - - 161,411 161,411 Total other financing sources - - 161,411 161,411 NET CHANGE IN FUND BALANCE $ 1,134,056 $ 1,606,875 2,399,667 $ (792,792) FUND BALANCE: Beginning of year, as previously reported Change within financial reporting entity Major to nonmajor funds Beginning of year, as restated (Note 19) End of year 5,407,159 5,407,159 $ 7,806,826 181 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual American Rescue Plan Special Revenue Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Intergovernmental $ 906,777 $ 6,484,624 $ 6,309,485 $ (175,139) Total revenues 906,777 6,484,624 6,309,485 (175,139) EXPENDITURES: Operating: Personnel 74,684 74,684 73,617 1,067 Operations and maintenance 177,969 177,969 163,185 14,784 Capital improvement projects: 160,256 6,231,971 6,072,683 159,288 Total expenditures 412,909 6,484,624 6,309,485 175,139 NET CHANGE IN FUND BALANCE $ 493,868 $ - - $ - FUND BALANCE: Beginning of year - End of year $ - 182 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual General Capital Projects Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget EXPENDITURES: Capital improvement projects $ 2,073,500 $ 12,792,732 $ 3,770,166 $ 9,022,566 Total expenditures 2,073,500 12,792,732 3,770,166 9,022,566 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (2,073,500) (12,792,732) (3,770,166) 9,022,566 OTHER FINANCING SOURCES: Transfers in 2,073,500 2,372,894 2,372,894 Total other financing sources 2,073,500 2,372,894 2,372,894 NET CHANGE IN FUND BALANCE $ - $ (10,419,838) (1,397,272) FUND BALANCE: Beginning of year 2,880,282 End of year $ 1,483,010 $ 9,022,566 183 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Civic Arts Projects Capital Projects Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Investment earnings Total revenues EXPENDITURES: Capital improvement projects Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER - $ 13,241 $ 13,241 - 13,241 13,241 161,468 226,968 14,999 211,969 161,468 226,968 14,999 211,969 (UNDER) EXPENDITURES (161,468) (226,968) (1,758) OTHER FINANCING SOURCES (USES): Transfers in - - - Transfers out 157,439 (71,840) (71,840) Total other financing sources (uses) 157,439 (71,840) (71,840) NET CHANGE IN FUND BALANCE $ (4,029) $ (298,808) (73,598) FUND BALANCE: Beginning of year End of year 303,040 $ 229,442 225,210 $ 225,210 184 City of Santa Clarita Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Public Financing Authority Debt Service Fund For the Year Ended June 30, 2024 Original Final Variance with Budget Budget Actual Final Budget REVENUES: Investment earnings Total revenues - $ 5,559 $ 5,559 - 5,559 5,559 EXPENDITURES: Operating: Operations and maintenance 5,944,659 5,944,659 5,941,146 3,513 Total expenditures 5,944,659 5,944,659 5,941,146 3,513 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (5,944,659) (5,944,659) (5,935,587) 9,072 OTHER FINANCING SOURCES: Transfers in 5,944,659 5,944,659 5,913,043 (31,616) Total other financing sources 5,944,659 5,944,659 5,913,043 (31,616) NET CHANGE IN FUND BALANCE $ - $ - (22,544) $ (22,544) FUND BALANCE: Beginning of year End of year 1,108,751 $ 1,086,207 185 This page intentionally left blank. 186 INTERNAL SERVICE FUNDS Self -Insurance — To account for the City's self-insurance program. Computer Replacement — To account for the financing of the replacement of the City's computer equipment. Vehicle Replacement — To account for the financing of the replacement of the City's automotive equipment. 187 This page intentionally left blank. 188 City of Santa Clarita Combining Statement of Net Position Internal Service Funds June 30, 2024 ASSETS Current assets: Cash and investments Accounts receivable Interest receivable Total current assets Noncurrent assets: Net OPEB asset Capital assets, being depreciated, net Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions Deferred outflows related to OPEB Total deferred outflows of resources LIABILITIES Current liabilities: Accounts payable and accrued liabilities Compensated absences, due within one year Claims and judgements, due within one year Total current liabilities Noncurrent liabilities: Compensated absences payable, due in more than one year Claims and judgements, due in more than one year Net pension liabilities Total noncurrent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions Deferred inflows related to OPEB Total deferred inflows of resources NET POSITION Investment in capital assets Unrestricted Total net position Self Computer Vehicle Insurance Replacement Replacement Total $ 11,736,654 $ 3,890,484 $ 5,947,022 $ 21,574,160 6,950 19,463 - 26,413 50,754 17,055 26,071 93,880 11,794,358 3,927,002 5,973,093 21,694,453 22,888 - - 22,888 - 56,580 1,496,425 1,553,005 22,888 56,580 1,496,425 1,575,893 11,817,246 3,983,582 7,469,518 23,270,346 111,791 - - 111,791 15,300 - - 15,300 127,091 - - 127,091 29,358 113,143 - 142,501 9,961 - - 9,961 1,591,000 - - 1,591,000 1,630,319 113,143 - 1,743,462 38,120 - 7,986,306 - 154,941 - 8,179,367 - 9,809,686 113,143 5,174 - cc inc - 38,120 - 7,986,306 - 154,941 - 8,179,367 - 9,922,829 - 5,174 cc inc 61,369 - - 61,369 - 56,580 1,496,425 1,553,005 2,073,282 3,813,859 5,973,093 11,860,234 $ 2,073,282 $ 3,870,439 $ 7,469,518 $ 13,413,239 189 City of Santa Clarita Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds For the Year Ended June 30, 2024 Self Computer Vehicle Insurance Replacement Replacement Total OPERATING REVENUES: Charges for services Other revenue Total operating revenues OPERATING EXPENSES: Administration and personnel services Services and supplies Depreciation expense Total operating expenses I►IaYgo] ww1M." I01►LeiI►WeluIy NONOPERATING REVENUE (EXPENSES): Investment income (Loss) on sale of capital asset Total nonoperating expenses M1ME"A1►�►1Do8all101110 NET POSITION: Beginning of the year End of the year $ 4,108,458 $ 956,625 $ 995,970 $ 6,061,053 - 19,463 - 19,463 41108,458 976,088 995,970 6,080,516 359,244 86 - 359,330 4,475,219 550,055 315,811 5,341,085 (366,761) 426,033 680,159 739,431 400,057 144,874 226,059 770,990 - (33,754) (63,616) (97,370) 400,057 111,120 162,443 673,620 33,296 537,153 842,602 1,413,051 2,039,986 3,333,286 6,626,916 12,000,188 $ 2,073,282 $ 3,870,439 $ 7,469,518 $ 13,413,239 190 City of Santa Clarita Combining Statement of Cash Flows Internal Service Funds For the Year Ended June 30, 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from users Cash paid to suppliers for goods and services Cash paid to employees for services Cash paid for claims and judgments Net cash provided by operating activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets Net cash (used in) capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES: Investment income received Net cash provided by investing activities Net increase in cash and cash equivalents CASH AND CASH EQUIVALENTS: Beginning of year End of year RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation Change in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in net pension asset (Increase) decrease in net OPEB asset (Increase) decrease in deferred outflows related to pensions (Increase) decrease in deferred outflows related to OPEB Increase in accounts payable and accrued liabilities Increase in compensated absences Increase in claims and judgements Increase (decrease) in deferred inflows related to pensions Increase (decrease) in deferred inflows related to OPEB Total adjustments Net cash provided by operating activities Self Computer Vehicle Insurance Replacement Replacement Total $ 4,102,861 $ 956,625 $ 995,970 $ 6,055,456 (58,387) (393,676) (13,123) (465,186) (322,381) - - (322,381) (1,979,265) - - (1,979,265) 1,742,828 562,949 982,847 3,288,624 - - (293,723) (293,723) - - (293,723) (293,723) 384,632 139,837 218,986 743,455 384,632 139,837 218,986 743,455 21127,460 702,786 908,110 3,738,356 9,609,194 3,187,698 5,038,912 17,835,804 $ 11,736,654 $ 3,890,484 $ 5,947,022 $ 21,574,160 $ (366,761) $ 426,033 $ 680,159 $ 739,431 - 44,279 302,688 346,967 (5,597) (19,463) - (25,060) (7,512) - - (7,512) 12,482 - - 12,482 1,697 - - 1,697 10,356 - - 10,356 (58,303) 112,100 - 53,797 31,070 - - 31,070 2,136,710 - - 2,136,710 (2,070) - - (2,070) (9,244) - - (9,244) 21109,589 136,916 302,688 2,549,193 $ 1,742,828 $ 562,949 $ 982,847 $ 3,288,624 191 This page intentionally left blank. 192 CUSTODIAL FUNDS Custodial Funds are used to account for assets for the benefit of organizations or other governments that are not part of the City. In addition, the assets are not derived from the City's provision of goods or services to those individuals, organizations, or other governments. Assessment District No. 92-2 (Golden Valley Road) — To account for monies held to account for debt service requirements of Assessment District No. 92-2. Assessment District No. 99-1 (Vermont Everett) — To account for monies held to account for debt service requirements of Assessment District No. 99-1. Community Facilities District No. 2002-1 (Valencia Town Center) — To account for monies held to account for debt service requirements for Community Facilities District No. 2002-1 Community Facilities District No. 2016-1 (Vista Canyon) — To account for monies held to account for debt service requirements for Community Facilities District No. 2016-1 Santa Clarita Watershed and Recreation Conservancy Authority — To account for monies held for the operations of the Watershed Authority, for which the City is holding cash. 193 City of Santa Clarita Combining Statement of Fiduciary Net Position Custodial Funds June 30, 2024 ASSETS Cash and investments Interest receivable Contributions receivable Cash and investments with fiscal agents Total assets LIABILITIES Accounts payable Total liabilities NET POSITION Restricted for: Individuals, organizations, and other governments Assessment Assessment District District No.92-2 No.99-1 Community Facilities District No 2002-1 $ 20,146 $ 165,246 $ 1,217,973 88 724 5,333 - 52 31,208 - 62,243 1,650,227 20,234 228,265 2,904,741 - - 163 - - 163 $ 20,234 $ 228,265 $ 2,904,578 194 City of Santa Clarita Combining Statement of Fiduciary Net Position (Continued) Custodial Funds June 30, 2024 ASSETS Cash and investments Interest receivable Contributions receivable Cash and investments with fiscal agents Total assets LIABILITIES Accounts payable Total liabilities NET POSITION Restricted for: Individuals, organizations, and other governments Santa Clarita Community Watershed and Facilities Recreation District Conservancy No 2016-1 Authority Total $ 543,134 $ 15,575 $ 1,962,074 2,381 - 8,526 - - 31,260 1,106,708 - 2,819,178 1,652,223 15,575 4,821,038 2,332 - 2,495 2,332 - 2,495 $ 1,649,891 $ 15,575 $ 4,818,543 195 City of Santa Clarita Combining Statement of Changes in Fiduciary Net Position Custodial Funds For the Year Ended June 30, 2024 ADDITIONS: Special assessment from property owners Net investment gain (loss) Total additions DEDUCTIONS: Contractual services Payments for debt services Payments to other governments Total deductions Change in net position NET POSITION: Beginning of year End of year Assessment District No.92-2 Assessment District No.99-1 Community Facilities District No 2002-1 $ 697 $ 72,015 $ 1,398,680 11,598 9,709 46,136 12,295 81,724 1,444,816 2,678 5,851 2,713 72,398 57,656 1,337,875 248,424 12,872 12,767 323,500 76,379 1,353,355 (311,205) 5,345 91,461 331,439 222,920 2,813,117 $ 20,234 $ 228,265 $ 2,904,578 196 City of Santa Clarita Combining Statement of Changes in Fiduciary Net Position (Continued) Custodial Funds For the Year Ended June 30, 2024 ADDITIONS: Special assessment Net investment gain (loss) Total additions DEDUCTIONS: Contractual services Payments for debt services Payments to other governments Total deductions Change in net position NET POSITION: Beginning of year End of year Santa Clarita Community Watershed and Facilities Recreation District Conservancy No 2016-1 Authority $ 881,741 $ 1,000 17,429 (9) 899,170 991 33,859 721 808,200 - 842,059 721 57,111 270 Total $ 2,354,133 84,863 2,438,996 45,822 2,276,129 274,063 2,596,014 (157,018) 1,592,780 15,305 4,975,561 $ 1,649,891 $ 15,575 $ 4,818,543 197 This page intentionally left blank. 198 STATISTICAL SECTION (Unaudited) 199 This page intentionally left blank. 200 City of Santa Clarita Statistical Section (Unaudited) This part of the City of Santa Clarita's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. Contents Financial Trends Page 202- 211 These tables contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity 212 - 229 These tables contain information to help the reader assess the City's most significant local revenue source, the property tax. Debt Capacity 230 - 236 These tables present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Demographic and Economic Information 237 These tables offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information 238 - 242 These tables contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. Sources: City of Santa Clarita Finance Division 201 City of Santa Clarita Governmental Activities Net investment in capital assets Restricted for: Debt service Specific projects and programs Total restricted Unrestricted Total governmental activities net position Business -Type Activities Net investment in capital assets Unrestricted Total business -type activities net position Primary Government Net investment in capital assets Restricted Unrestricted Total primary government net position Net Position by Component (1) Last Ten Fiscal Years Ended June 30, 2024 (accrual basis of accounting) FISCAL YEAR 23-24 22-23 21-22 20-21 19-20 $ 1,154,546,653 $ 1,124,934,271 $ 1,080,862,181 $ 1,032,579,113 $ 984,052,712 1,086,933 - - - - 182,397,736 158,032,140 152,349,197 147,556,902 146,874,629 183,484,669 158,032,140 152,349,197 147,556,902 146,874,629 219,254,617 188,013,004 161,500,702 126,571,370 80,879,095 $ 1,557,285,939 $ 1,470,979,415 $ 1,394,712,080 $ 1,306,707,385 $ 1,211,806,436 $ 84,534,345 $ 96,692,691 $ 95,597,321 $ 88,023,510 $ 80,308,956 18,928,743 11,332,040 8,917,312 6,895,650 (1,465,963) $ 103,463,088 $ 108,024,731 $ 104,514,633 $ 94,919,160 $ 78,842,993 $ 1,239,080,998 $ 1,221,626,962 $ 1,176,459,502 $ 1,120,602,623 $ 1,064,361,668 183,484,669 158,032,140 152,349,197 147,556,902 146,874,629 238,183,360 199,345,044 170,418,014 133,467,020 79,413,132 $ 1,660,749,027 $ 1,579,004,146 $ 1,499,226,713 $ 1,401,626,545 $ 1,290,649,429 Note: (1) Accounting standards require that net position be reported in three components in the financial statements: net investment in capital assets, restricted and unrestricted. Net position is considered restricted only when (a) an external party, such as the State of California or the federal government, places a restriction on how the revenues may be used, or (b) enabling legislation is enacted by the City. Source: City of Santa Clarita, Administrative Services Department - Finance Division 202 City of Santa Clarita Net Position by Component(') (Continued) Last Ten Fiscal Years Ended June 30, 2024 (accrual basis of accounting) FISCAL YEAR 17-18 17-18 16-17 15-16 14-15 Governmental Activities Net investment in capital assets $ 920,036,752 $ 895,056,642 $ 867,144,998 $ 810,324,041 $ 818,817,043 Restricted for: Debt service - - - - - Specific projects and programs 119,375,331 113,286,625 87,272,723 70,773,322 73,541,304 Total restricted 119,375,331 113,286,625 87,272,723 70,773,322 73,541,304 Unrestricted 122,991,202 85,155,060 105,514,664 115,356,272 79,211,600 Total governmental activities net position $ 1,162,403,285 $ 1,093,498,327 $ 1,059,932,385 $ 996,453,635 $ 971,569,947 Business -Type Activities Net investment in capital assets $ 83,906,440 $ 79,199,471 $ 79,589,102 $ 76,687,260 $ 78,495,871 Unrestricted 269,116 (888,318) (1,202,362) 3,101,763 2,766,972 Total business -type activities net position $ 84,175,556 $ 78,311,153 $ 78,386,740 $ 79,789,023 $ 81,262,843 Primary Government Net investment in capital assets $ 1,003,943,192 $ 974,256,113 $ 946,734,100 $ 887,011,301 $ 897,312,914 Restricted 119,375,331 113,286,625 87,272,723 70,773,322 73,541,304 Unrestricted 123,260,318 84,266,742 104,312,302 118,458,035 81,978,572 Total primary government net position $ 1,246,578,841 $ 1,171,809,480 $ 1,138,319,125 $ 1,076,242,658 $ 1,052,832,790 203 City of Santa Clarita Changes in Net Position Last Ten Fiscal Years Ended June 30, 2024 (accrual basis of accounting) FISCAL YEAR 23-24 22-23 21-22 20-21 19-20 Expenses Governmental Activities General government $ 42,903,612 $ 49,428,154 $ 14,728,358 $ 51,594,712 $ 54,710,526 Public safety 38,352,436 33,228,916 30,936,129 35,128,997 29,907,832 Public works 21,576,455 18,720,585 30,493,258 17,239,899 33,663,857 Recreation and community service 16,966,219 20,430,503 23,989,989 15,107,049 16,047,345 Community development 20,881,513 19,948,687 12,203,347 11,435,676 8,942,864 Neighborhood Services 35,112,719 23,816,831 42,179,104 13,865,065 12,862,529 Unallocated infrastructure depreciation 22,660,450 22,077,333 21,432,943 21,543,801 21,043,711 Interest on long-term debt 5,267,945 3,912,327 2,743,559 3,742,582 3,549,649 Total governmental activities expenses 203,721,349 191,563,336 178,706,687 169,657,781 180,728,313 Business -Type Activities Transit 42,110,510 35,506,571 31,342,873 27,898,955 31,060,676 Total business -type activities expenses 42,110,510 35,506,571 31,342,873 27,898,955 31,060,676 Total primary government expenses $ 245,831,859 $ 227,069,907 $ 210,049,560 $ 197,556,736 $ 211,788,989 Program Revenues Governmental Activities Charges for services: General government $ 44,473,152 $ 41,180,442 $ 916,671 $ 9,254,707 $ 8,215,989 Public safety 1,975,034 2,053,902 1,658,867 1,303,759 1,484,005 Public works 8,453,094 7,366,425 11,352,114 3,627,549 12,201,244 Recreation and community service 16,588,500 11,412,044 21,724,121 16,419,310 3,635,790 Community development 15,488,032 15,864,222 3,073,196 1,899,854 1,552,869 Neighborhood Services 12,860,528 9,429,835 33,555,637 31,252,912 30,575,191 Operating grants and contributions 31,377,313 35,092,994 38,093,703 44,524,768 22,066,816 Capital grants and contributions 27,088,019 35,865,511 68,626,540 42,849,916 41,462,296 Total governmental activities program revenues 158,303,672 158,265,375 179,000,849 151,132,775 121,194,200 Business -Type Activities Charges for services: Transit 6,161,116 6,499,657 5,936,598 5,799,364 6,785,178 Operating grants and contributions 27,714,574 15,173,066 12,087,130 29,444,844 13,405,112 Capital grants and contributions 3,509,025 8,107,402 13,402,891 9,036,527 5,701,142 Total business -type activities program revenues 37,384,715 29,780,125 31,426,619 44,280,735 25,891,432 Total primary government revenues $ 195,688,387 $ 188,045,500 $ 210,427,468 $ 195,413,510 $ 147,085,632 Source: City of Santa Clarita, Administrative Services Department - Finance Division 204 City of Santa Clarita Changes in Net Position (Continued) Last Ten Fiscal Years Ended June 30, 2024 (accrual basis of accounting) FISCAL YEAR 18-19 17-18 16-17 15-16 14-15 Expenses Governmental Activities General government $ 62,309,457 $ 53,928,438 $ 44,390,099 $ 39,155,006 $ 46,224,813 Public safety 27,757,002 27,232,724 25,231,712 23,778,931 22,235,368 Public works 20,772,164 14,771,925 23,563,825 38,223,035 36,103,144 Recreation and community service 17,585,165 23,472,469 16,224,154 15,594,958 22,619,337 Community development 7,214,786 6,957,438 7,057,301 10,505,906 5,720,237 Neighborhood Services 12,622,824 1,082,836 1,815,637 - - Unallocated infrastructure depreciation 20,630,522 19,259,333 18,833,113 18,342,933 18,072,657 Interest on long-term debt 2,589,767 1,638,960 1,378,888 2,194,181 1,827,094 Total governmental activities expenses 171,481,687 148,344,123 138,494,729 147,794,950 152,802,650 Business -Type Activities Transit 32,065,240 28,309,870 29,858,499 28,127,407 28,062,668 Total business -type activities expenses 32,065,240 28,309,870 29,858,499 28,127,407 28,062,668 Total primary government expenses $ 203,546,927 $ 176,653,993 $ 168,353,228 $ 175,922,357 $ 180,865,318 Program Revenues Governmental Activities Charges for services: General government $ 8,547,181 $ 10,007,154 $ 6,740,507 $ 22,914,059 $ 26,783,616 Public safety 1,937,603 1,429,900 1,231,974 1,162,551 1,605,059 Public works 14,669,328 15,792,197 11,549,806 16,407,616 13,056,586 Recreation and community service 6,344,242 8,306,076 6,191,011 8,142,336 4,525,662 Community development 1,704,920 1,901,897 1,906,079 1,843,296 1,774,482 Neighborhood Services 29,338,661 27,090,508 25,044,704 - - Operating grants and contributions 13,574,920 9,259,079 5,977,971 7,687,397 12,561,608 Capital grants and contributions 59,565,349 31,807,581 55,220,052 23,629,474 30,107,231 Total governmental activities program revenues 135,682,204 105,594,392 113,862,104 81,786,729 90,414,244 Business -Type Activities Charges for services: Transit 7,662,186 6,987,488 7,231,136 7,546,433 6,779,579 Operating grants and contributions 15,292,991 10,226,946 8,459,236 9,153,499 8,228,348 Capital grants and contributions 10,434,282 3,102,269 9,138,643 3,504,305 1,423,440 Total business -type activities program revenues 33,389,459 20,316,703 24,829,015 20,204,237 16,431,367 Total primary government revenues $ 169,071,663 $ 125,911,095 $ 138,691,119 $ 101,990,966 $ 106,845,611 205 City of Santa Clarita Changes in Net Position (Continued) Last Ten Fiscal Years Ended June 30, 2024 (accrual basis of accounting) Net Revenues (expenses): Governmental activities Business -type activities Total net revenues (expenses) General Revenue and Other Changes in Net Position Governmental activities Taxes: Sales taxes Property taxes Franchise taxes Real property transfer taxes Transient occupancy taxes Unrestricted revenue in lieu of motor vehicle taxes Unrestricted investment earnings Miscellaneous revenue Gain on sale of capital asset Transfers Reversal of Allowance for Notes to RDA Successor Agency Capital Contributions Total governmental activities Business -type activities Unrestricted investment earnings Gain on sale of capital asset Miscellaneous revenue Transfers Total business -type activities Total primary government Change in Net Position Governmental activities Business -type activities Total primary government FISCAL YEAR 23-24 22-23 21-22 20-21 19-20 (45,417,677) (33,297,961) 294,162 (18,525,006) (59,534,113) (4,725,795) (5,726,446) 83,746 16,381,780 (5,169,244) (50,143,472) (39,024,407) 377,908 (2,143,226) (64,703,357) 48,363,857 48,507,761 49,476,922 43,197,889 36,621,145 48,143,344 45,187,496 42,113,398 52,981,738 46,420,350 10,936,950 10,688,049 10,883,225 9,493,742 8,604,265 1,340,239 1,307,533 2,569,074 2,010,033 1,418,026 5,290,241 5,296,490 4,874,977 2,275,383 2,726,113 308,711 213,520 349,171 173,463 207,931 13,600,790 3,407,265 (4,773,346) 634,957 12,311,467 3,485,235 3,333,538 4,993,518 2,311,282 472,227 - - - - 2,050 254,834 (8,384,754) (8,097,818) 347,468 153,690 131,724,201 109,556,898 102,389,121 113,425,955 108,937,264 418,986 13,527 (185,016) 41,855 (9,629) - 35,000 36,900 - - - 803,263 1,562,025 - - (254,834) 8,384,754 8,097,818 (347,468) (153,690) 164,152 9,236,544 9,511,727 (305,613) (163,319) $131,888,353 $118,793,442 $111,900,848 $113,120,342 $108,773,945 $ 86,306,524 $ 76,258,937 $102,683,283 $ 94,900,949 $ 49,403,151 (4,561,643) 3,510,098 9,595,473 16,076,167 (5,332,563) $ 81,744,881 $ 79,769,035 $112,278,756 $110,977,116 $ 44,070,588 Source: City of Santa Clarita, Administrative Services Department - Finance Division 206 City of Santa Clarita Changes in Net Position (Continued) Last Ten Fiscal Years Ended June 30, 2024 (accrual basis of accounting) Net Revenues (expenses): Governmental activities Business -type activities Total net revenues (expenses) General Revenue and Other Changes in Net Position Governmental activities Taxes: Sales taxes Property taxes Franchise taxes Real property transfer taxes Transient occupancy taxes Unrestricted revenue in lieu of motor vehicle taxes Unrestricted investment earnings Miscellaneous revenue Gain on sale of capital asset Transfers Reversal of Allowance for Notes to RDA Successor Agency Capital Contributions Total governmental activities Business -type activities Unrestricted investment earnings Gain on sale of capital asset Miscellaneous revenue Transfers Total business -type activities Total primary government Change in Net Position Governmental activities Business -type activities Total primary government FISCAL YEAR 18-19 17-18 16-17 15-16 14-15 (35,799,482) (42,749,731) (24,060,399) (66,008,221) $ (66,008,221) 1,324,219 (7,993,167) (5,029,484) (7,923,170) (7,923,170) (34,475,263) $(50,742,898) $(29,089,883) $(73,931,391) $(73,931,391) 38,546,183 37,252,523 36,147,727 37,807,385 34,355,412 43,761,925 42,284,749 39,924,749 40,072,597 38,556,890 8,369,481 8,523,791 8,208,347 8,392,789 8,512,818 1,227,947 1,320,018 1,275,363 1,383,473 1,169,780 3,352,776 3,489,281 3,639,264 3,813,437 3,124,904 147,752 162,103 144,665 129,053 85,703 12,528,843 591,177 1,052,254 4,142,959 2,240,594 1,206,740 2,661,916 737,513 1,080,771 678,937 (1,600) 10,935 11,711 459,709 27,410 (4,435,608) (5,924,278) (3,602,443) (6,390,264) (7,329,516) - - - 12,633,832 - - - - 15,780,230 104,704,439 90,372,215 87,539,150 90,891,909 109,836,994 32,613 (1,242) (28,735) 59,086 17,592 71,963 20,238 53,223 - - 4,435,608 5,924,278 3,602,443 6,390,264 7,329,516 4,540,184 5,943,274 3,626,931 6,449,350 7,347,108 $109,244,623 $ 96,315,489 $ 91,166,081 $ 97,341,259 $117,184,102 $ 68,904,957 $ 47,622,484 $ 63,478,751 $ 24,883,688 $ 43,828,773 5,864,403 (2,049,893) (1,402,553) (1,473,820) (576,062) $ 74,769,360 $ 45,572,591 $ 62,076,198 $ 23,409,868 $ 43,252,711 Source: City of Santa Clarita, Administrative Services Department - Finance Division 207 General Fund Nonspendable Restricted Committed Assigned Unassigned Total General Fund All Other Governmental Funds Nonspendable Restricted Committed Assigned Unassigned Total all other governmental funds City of Santa Clarita Fund Balances of Governmental Funds Last Ten Fiscal Years Ended June 30, 2024 (modified accrual basis of accounting) FISCAL YEAR 23-24 22-23 21-22 20-21 19-20 $ 8,555,468 $ 14,295,430 $ 15,030,511 $ 7,474,892 $ 9,810,973 11,773,441 23,514,275 4,655,940 9,644,574 23,063,669 193,570,167 166,255,745 146,922,006 110,906,093 97,293,470 68,028,558 63,696,700 62,141,361 59,968,580 60,273,125 $ 281,927,634 $ 267,762,150 $ 228,749,818 $ 187,994,139 $ 190,441,237 $ 124,878 $ 74,967 $ 344,869 $ 491,504 $ 575,276 186,588,168 155,269,550 147,460,244 123,614,422 112,631,199 - 1,584 783 832 9,277 1,755,136 3,222,874 1,081,539 755,174 791,914 (1,930,730) (5,059,903) (1,820,499) (869,803) (3,127,904) $ 186,537,452 $ 153,509,072 $ 147,066,936 $ 123,992,129 $ 110,879,762 FUND BALANCES Fiscal Year Ended June 30, 2024 ■ All Other Governmental Funds4MMEWO General Fund 40% 60% Source: City of Santa Clarita, Administrative Services Department - Finance Division 208 General Fund Nonspendable Restricted Committed Assigned Unassigned Total General Fund All Other Governmental Funds Nonspendable Restricted Committed Assigned Unassigned Total all other governmental funds 200 180 160 140 y 20 c 0100 80 60 40 20 0 City of Santa Clarita Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years Ended June 30, 2024 (modified accrual basis of accounting) FISCAL YEAR 18-19 17-18 16-17 15-16 14-15 $ 12,050,141 $ 12,390,885 $ 15,742,945 $ 11,108,252 $ 11,024,338 120,981,128 88,674,761 79,367,084 79,367,084 55,336,807 58,930,970 47,116,235 53,905,237 50,669,580 50,141,486 $ 191,962,239 $ 148,181,881 $ 149,015,266 $ 141,144,916 $ 116,502,631 $ 772,627 $ 5,882 $ 976,841 $ 1,134,103 $ 1,455,067 108,394,699 113,286,625 86,664,536 86,240,243 85,763,293 13,460 15,008 14,000 14,000 14,000 1,040,181 1,117,165 2,151,360 1,881,728 1,843,822 (3,266,496) (6,786,531) (5,897,790) (6,975,198) (8,633,303) $ 106,954,471 $ 107,638,149 $ 83,908,947 $ 82,294,876 $ 80,442,879 FUND BALANCES ALL OTHER GOVERNMENTAL FUNDS Last Ten Fiscal Years 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 Fiscal Year Source: City of Santa Clarita, Administrative Services Department - Finance Division 209 City of Santa Clarita Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years Ended June 30, 2024 (modified accrual basis of accounting) FISCAL YEAR 23-24 22-23 21-22 20-21 19-20 Revenues: Taxes $128,300,167 $124,245,820 $123,417,159 $110,132,248 $ 95,997,830 Special assessments 39,685,405 40,833,265 36,374,012 35,634,980 - Licenses and permits 12,756,490 13,073,140 9,724,390 11,498,980 7,538,878 Developer fees 14,697,803 3,048,765 4,674,125 11,094,312 2,917,250 Investment income (loss) 21,858,350 5,858,733 (7,617,836) 664,575 11,777,753 Intergovernmental 56,132,541 55,093,351 70,217,168 43,058,715 33,746,890 Fines and forfeitures 2,006,018 2,284,721 1,942,026 1,702,622 1,736,201 Service charges 14,714,974 13,467,246 12,681,139 6,949,375 42,052,534 Other revenues 1,875,557 2,596,935 5,639,891 13,984,800 3,508,593 Total Revenues 292,027,305 260,501,976 257,052,074 234,720,607 199,275,929 Expenditures: Current: General government 39,846,039 47,579,510 15,656,486 46,060,921 50,929,600 Public safety 36,365,740 32,234,273 30,189,992 35,570,621 30,511,022 Public works 17,300,261 16,754,090 23,570,003 90,316,078 72,953,711 Recreation and community service 17,110,899 15,941,571 18,894,253 14,917,730 13,846,768 Community development 20,740,127 19,466,417 13,146,687 11,556,377 8,709,340 Neighborhood services 33,712,098 24,377,481 43,730,242 13,885,978 13,100,419 Capital outlay 71,203,395 62,208,791 54,121,315 20,702,698 4,213,593 Debt service: Principal 3,897,429 3,680,150 2,363,121 2,315,371 2,482,109 Interest 5,397,046 3,596,800 2,857,672 3,363,625 2,901,257 Redemption of district credits - 354,697 - 278,843 - Total Expenditures 245,573,034 226,193,780 204,529,771 239,036,131 199,647,819 Excess of Revenues Over (Under) Expenditures 46,454,271 34,308,196 52,522,303 (4,315,524) (371,890) Other Financing Sources (Uses) Revenue bonds issued/issuance premium - 716,027 - 14,270,000 - Issuance of long-term debt 484,759 18,815,000 - 225,409 - Issuance of financed purchase - - - 164,970 - Transfers in 31,115,048 44,831,118 19,599,811 43,175,925 20,787,975 Transfers out (30,860,214) (53,215,872) (27,697,629) (42,855,511) (18,011,796) Issuance of district credits - - - - - Total Other Financing Sources (Uses) 739,593 11,146,273 (8,097,818) 14,980,793 2,776,179 Net change in fund balances 47,193,864 45,454,469 44,424,485 10,665,269 2,404,289 Fund balances - Beginning of Year 421,271,222 375,816,753 331,392,268 301,320,999 298,916,710 Fund balances - End of Year $468,465,086 $421,271,222 $375,816,753 $311,986,268 $301,320,999 Debt service as percentage of noncapital expenditures 5.69% 4.39% 3.51% 4.12% 3.54% Source: City of Santa Clarita, Administrative Services Department - Finance Division 210 City of Santa Clarita Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years Ended June 30, 2024 (modified accrual basis of accounting) Revenues: Taxes Special assessments Licenses and permits Developer fees Investment income (loss) Intergovernmental Fines and forfeitures Service charges Other revenues Total Revenues Expenditures: Current: General government Public safety Public works Recreation and community service Community development Neighborhood services Capital outlay Debt service: Principal Interest Redemption of district credits Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Revenue bonds issued/issuance premium Issuance of long-term debt Issuance of financed purchase Transfers in Transfers out Issuance of district credits Total Other Financing Sources (Uses) Net change in fund balances Fund balances - Beginning of Year Fund balances - End of Year FISCAL YEAR 18-19 17-18 16-17 15-16 14-15 $ 95,406,064 $ 93,032,465 $ 89,340,115 $ 91,598,734 $ 85,789,556 9,951,586 7,688,342 7,408,357 7,283,898 5,567,280 6,458,182 9,888,734 4,211,890 6,272,799 10,764,554 12,045,344 595,650 1,030,146 3,937,618 2,026,507 36,086,192 36,491,705 23,922,361 31,380,753 31,953,692 1,851,190 1,372,687 1,117,620 973,753 1,261,752 42,117,270 41,793,226 36,639,646 36,828,067 37,738,754 1,677,809 1,744,075 690,974 1,789,724 511,117 205,593,637 192,606,884 164,361,109 180,065,346 175,613,212 59,638,451 50,728,642 41,138,676 35,969,981 43,196,168 28,342,578 27,217,567 25,214,091 23,777,171 22,188,641 51,343,366 57,213,646 43,459,620 21,327,662 36,082,625 15,450,815 21,589,318 20,446,596 37,937,050 21,007,651 7,344,064 6,988,331 6,583,484 10,673,993 5,883,441 12,823,905 1,162,647 1,667,058 - - 5,053,670 12,083,887 9,759,258 10,562,953 23,224,180 2,833,260 2,138,803 2,167,429 2,852,140 1,992,479 2,520,153 1,647,842 1,237,357 4,539,815 1,850,703 - - - - 5,105,402 185,350,262 180, 770,683 151,673,569 147,640,765 160, 531,290 20,243,375 11,836,201 12,687,540 32,424,581 15,081,922 25,850,000 15,848,271 - 32,997,352 - 1,463,083 (35,099) - (32,907,353) - 56,075,180 25,690,566 8,046,713 11,940,563 7,850,640 (60,534,955) (30,444,125) (11,249,832) (17,960,861) (14,478,956) 22,853,308 11,059,613 (3,203,119) (5,930,299) (6,628,316) 43,096,683 22,895,814 9,484,421 26,494,282 8,453,606 255,820,027 232,924,213 223,439,792 196,945,510 188,491,904 $298,916,710 $255,820,027 $232,924,213 $223,439,792 $196,945,510 Debt service as percentage of noncapital expenditures 5.72% 2.80% Source: City of Santa Clarita, Administrative Services Department - Finance Division 3.26% 2.95% 4.40% 211 City of Santa Clarita Assessed Values (1) and Actual Values of Taxable Property Last Ten Fiscal Years STATE ASSESSED LOCALLY ASSESSED SECURED (UTILITY) SECURED Fiscal IMPROVE -PERSONAL IMPROVE- PERSONAL OTHER Year LAND MENTS PROPERTY TOTAL LAND MENTS PROPERTY EXEMPTIONS TOTAL 2014-15 1,431,971 2,264,780 3,696,751 10,820,572,961 14,749,259,449 103,844,310 (453,562,893) 25,220,113,827 2015-16 1,431,971 2,264,780 3,696,751 11,358,919,366 15,476,133,167 109,544,613 (471,097,603) 26,473,499,543 2016-17 1,431,971 2,264,780 3,696,751 11,931,551,116 16,179,111,473 123,045,242 (348,794,590) 27,884,913,241 2017-18 2,368,193 2,208,225 4,576,418 12,988,746,949 17,460,522,327 136,887,194 (682,936,469) 29,903,220,001 2018-19 2,368,193 2,208,225 4,576,418 13,850,827,148 18,431,289,844 163,768,504 (817,961,355) 31,627,924,141 2019-20 2,076,418 2,208,225 4,284,643 15,147,396,256 19,912,518,511 149,977,284 (890,135,683) 34,319,756,368 2020-21 2,076,418 2,208,225 4,284,643 15,925,933,378 21,099,965,791 161,592,520 (1,093,220,517) 36,094,271,172 2021-22 2,221,125 2,208,225 4,429,350 16,732,539,639 21,591,409,056 168,868,456 (971,189,679) 37,521,627,472 2022-23 2,221,125 2,208,225 4,429,350 18,425,022,715 22,876,809,236 174,167,137 (1,053,639,624) 40,422,359,464 2023-24 2,221,125 - 2,221,125 20,130,311,294 24,405,051,568 172,628,552 (1,037,255,789) 43,670,735,625 ASSESSED VALUATION by CATEGORIES (Total Secured and Unsecured) Fiscal Year Ended June 30, 2024 PERSONAL PROPERTY, 1.83 % IMPROVEMENTS, 54.16% Note: (1) Assessed valuation is based on 100% of full value in accordance with Section 135 of the California Revenue and Taxation Code. (2) Direct Rate includes Redevelopment Agency areas. Source: HdL Coren & Cone, Los Angeles County Assessor 2023/24 Combined Tax Rolls 212 City of Santa Clarita Assessed Values (1) and Actual Values of Taxable Property Last Ten Fiscal Years LOCALLY ASSESSED TOTALS HOME - UNSECURED BEFORE TAXABLE % TOTAL OWNER Fiscal IMPROVE- PERSONAL OTHER OTHER ASSESSED INCR. DIRECT PROPERTY Year MENTS PROPERTY EXEMPTIONS TOTAL EXEMPTIONS VALUE (DECR.) RATE (2) TAX RELIEF 2014-15 339,544,656 561,740,289 (13,152,888) 888,132,057 26,578,658,416 26,111,942,635 7.59% 0.09163% 232,799,644 2015-16 299,024,341 569,926,540 (15,283,837) 853,667,044 27,817,244,778 27,330,863,338 4.67% 0.09169% 230,402,082 2016-17 265,891,622 547,111,240 (15,791,822) 797,211,040 29,050,407,444 28,685,821,032 4.96% 0.09259% 226,031,427 2017-18 280,824,664 549,107,476 (10,383,140) 819,549,000 31,420,665,028 30,727,345,419 7.12% 0.09111% 228,373,713 2018-19 274,390,510 584,621,318 (10,543,790) 848,468,038 33,309,473,742 32,480,968,597 5.71% 0.09126% 225,813,184 2019-20 275,047,748 584,844,131 (9,114,469) 850,777,410 36,074,068,573 35,174,818,421 8.29% 0.08989% 230,072,192 2020-21 287,998,801 605,666,637 (8,808,819) 884,856,619 38,085,441,770 36,983,412,434 5.14% 0.09054% 223,881,831 2021-22 287,812,025 580,588,788 (3,743,026) 864,657,787 39,365,647,314 38,390,714,609 3.81% 0.08972% 220,341,312 2022-23 321,861,561 610,467,610 (2,388,958) 929,940,213 42,412,757,609 41,356,729,027 7.73% 0.08955% 219,411,916 2023-24 363,480,782 663,792,792 (2,306,700) 1,024,966,874 45,737,486,113 44,697,923,624 8.08% 0.08955% 218,633,648 50,000 45,000 40,000 35,000 30,000 ' N c o $26,112 O 25,000 20,000 15,000 10,000 5,000 TOTAL ASSESSED VALUATION (Taxable Values) Last Ten Fiscal Years a $30,727 ■ $44,698 O $35,175■ $36,983,� IIIII I H w 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 Fiscal Year Note: (1) Assessed valuation is based on 100% of full value in accordance with Section 135 of the California Revenue and Taxation Code. (2) Direct Rate includes Redevelopment Agency areas. Source: HdL Coren & Cone, Los Angeles County Assessor 2023/24 Combined Tax Rolls 213 City of Santa Clarita Redevelopment Agency (1) Assessed Values (2) and Actual Values of Taxable Property Last Ten Fiscal Years STATE ASSESSED LOCALLY ASSESSED SECURED (UTILITY) SECURED FISCAL IMPROVE- PERSONAL IMPROVE- PERSONAL OTHER YEAR LAND MENTS PROPERTY TOTAL LAND MENTS PROPERTY EXEMPTIONS TOTAL 2014-15 N/A N/A N/A N/A N/A N/A N/A N/A N/A 2015-16 N/A N/A N/A N/A N/A N/A N/A N/A N/A 2016-17 N/A N/A N/A N/A N/A N/A N/A N/A N/A 2017-18 N/A N/A N/A N/A N/A N/A N/A N/A N/A 2018-19 N/A N/A N/A N/A N/A N/A N/A N/A N/A 2019-20 N/A N/A N/A N/A N/A N/A N/A N/A N/A 2020-21 N/A N/A N/A N/A N/A N/A N/A N/A N/A 2021-22 N/A N/A N/A N/A N/A N/A N/A N/A N/A 2022-23 N/A N/A N/A N/A N/A N/A N/A N/A N/A 2023-24 N/A N/A N/A N/A N/A N/A N/A N/A N/A (1) The Redevelopment Agency of the City was established on November 28, 1989, pursuant to the State of California and Safety Code, Section 33000. However, the Agency was not active until fiscal year 1998-99 and the Base Year was calculated in fiscal year 1996-97, which included the Homeowners Tax Relief of that year. Redevelopment agencies were dissolved by the State of California effective February 1, 2012. (2) Assessed valuation is based on 100% of full value in accordance with Section 135 of the California Revenue and Taxation Code. Source: County of Los Angeles, Auditor-Controller/Tax Division 214 City of Santa Clarita Redevelopment Agency (1) Assessed Values (2) and Actual Values of Taxable Property (Continued) Last Ten Fiscal Years LOCALLY ASSESSED TOTALS HOME - UNSECURED TOTALS TAXABLE OWNER FISCAL IMPROVE- PERSONAL OTHER BEFORE ASSESSED VALUE PROPERTY YEAR MENTS PROPERTY EXEMPTIONS TOTAL BASE YEAR BASE YEAR VALUE GROWTH TAX RELIEF 2014-15 N/A N/A N/A N/A N/A N/A N/A N/A N/A 2015-16 N/A N/A N/A N/A N/A N/A N/A N/A N/A 2016-17 N/A N/A N/A N/A N/A N/A N/A N/A N/A 2017-18 N/A N/A N/A N/A N/A N/A N/A N/A N/A 2018-19 N/A N/A N/A N/A N/A N/A N/A N/A N/A 2019-20 N/A N/A N/A N/A N/A N/A N/A N/A N/A 2020-21 N/A N/A N/A N/A N/A N/A N/A N/A N/A 2021-22 N/A N/A N/A N/A N/A N/A N/A N/A N/A 2022-23 N/A N/A N/A N/A N/A N/A N/A N/A N/A 2023-24 N/A N/A N/A N/A N/A N/A N/A N/A N/A (1) The Redevelopment Agency of the City was established on November 28, 1989, pursuant to the State of California and Safety Code, Section 33000. However, the Agency was not active until fiscal year 1998-99 and the Base Year was calculated in fiscal year 1996-97, which included the Homeowners Tax Relief of that year. Redevelopment agencies were dissolved by the State of California effective February 1, 2012. (2) Assessed valuation is based on 100% of full value in accordance with Section 135 of the California Revenue and Taxation Code. Source: County of Los Angeles, Auditor-Controller/Tax Division 215 City of Santa Clarita Assessed Values —Taxable Property Last Ten Fiscal Years CATEGORY 23-24 22-23 FISCAL YEAR 21-22 20-21 19-20 Residential $ 35,583,713,691 $ 32,800,203,874 $ 30,326,102,286 $ 29,068,019,284 $ 27,571,753,581 Commercial 4,214,808,288 4,083,237,255 3,980,147,941 3,866,268,970 3,681,744,410 Industrial 2,485,245,390 2,360,064,334 2,031,709,683 1,955,686,889 1,878,969,596 Irrigated 4,162,072 4,119,683 3,678,125 3,375,991 3,341,172 Dry farm - - - - - Recreational 116,127,811 116,460,141 109,898,400 118,115,005 116,868,740 Institutional 360,543,388 253,388,898 276,997,197 259,899,765 233,475,135 Government 1,646,734 674,098 804,413 1,357,829 1,323,707 Miscellaneous 324,844 318,478 356,649 352,996 346,079 Vacant land 736,283,483 646,601,491 644,262,314 677,706,729 702,751,187 SBE Nommitary 2,221,125 4,429,350 4,429,350 4,284,643 4,284,643 Possessory Int. 167,879,924 157,291,212 147,670,464 143,487,714 129,182,761 Unsecured 1,024,966,874 929,940,213 864,657,787 884,856,619 850,777,410 Unknown - - - - N C 2 c TOTALS: $ 44,697,923,624 $ 41,356,729,027 $ 38,390,714,609 $ 36,983,412,434 $ 35,174,818,421 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 ASSESSED VALUE - TAXABLE PROPERTY Last Ten Fiscal Years 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 Fiscal Year o Residential 0 Commercial o Industrial o Vacantland o All others 216 City of Santa Clarita Assessed Values —Taxable Property (Continued) Last Ten Fiscal Years CATEGORY 18-19 17-18 FISCAL YEAR 16-17 15-16 14-15 Residential $ 25,140,365,171 $ 23,734,569,687 $ 21,784,467,001 $ 20,809,579,112 $ 19,755,522,402 Commercial 3,557,018,366 3,399,444,104 3,248,599,972 3,059,958,633 2,952,772,231 Industrial 1,861,078,681 1,790,582,919 1,706,030,432 1,799,119,742 1,642,718,866 Irrigated 3,707,035 2,993,570 2,960,760 2,936,120 2,834,466 Dry farm - - - - - Recreational 113,347,606 106,578,193 99,802,827 104,324,505 101,870,300 Institutional 230,449,000 193,500,837 213,333,035 162,056,819 142,862,940 Government 371,122 363,846 356,714 220,358 216,042 Miscellaneous 339,297 315,717 309,530 348,240 341,421 Vacant land 593,951,571 554,513,132 449,270,431 419,750,992 507,997,067 SBE Nommitary 4,576,418 4,576,418 3,696,751 3,696,751 3,696,751 Possessory Int. 127,296,292 120,357,965 117,718,179 115,205,002 112,978,072 Unsecured 848,468,038 819,549,000 797,363,610 853,667,044 888,132,057 Unknown - 31 20 20 20 TOTALS: $ 32,480,968,597 $ 30,727,345,419 $ 28,423,909,262 $ 27,330,863,338 $ 26,111,942,635 Notes: In 1978 the voters of the State of California passed Proposition 13, which limited taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitation just mentioned. Source: HdL Coren & Cone, Los Angeles County Assessor 2023/24 Combined Tax Rolls 217 City of Santa Clarita Assessed Values —Use Category Summary Fiscal Year 2023-24 CATEGORY PARCELS ASSESSED VALUE PERCENT EXEMPTIONS NET TAXABLE VALUE PERCENT Residential 64,877 $ 35,694,864,769 77.9% $ 111,151,078 $ 35,583,713,691 79.61% Commercial 988 4,349,716,601 9.5% $ 134,908,313 4,214,808,288 9.43% Industrial 738 2,715,117,710 5.9% $ 229,872,320 2,485,245,390 5.56% Irrigated 6 4,162,072 0.0% $ - 4,162,072 0.01% Recreational 35 119,421,060 0.3% $ 3,293,249 116,127,811 0.26% Institutional 106 910,587,530 2.0% $ 550,044,142 360,543,388 0.81% Government 6 1,646,734 0.0% $ - 1,646,734 0.00% Miscellaneous 7 324,844 0.0% $ - 324,844 0.00% Vacant land 3,648 743,334,230 1.6% $ 7,050,747 736,283,483 1.65% SBE Nonunitary (14) 2,221,125 0.0% $ - 2,221,125 0.00% Possessory Int. (2,081) 168,815,864 0.4% $ 935,940 167,879,924 0.38% Unsecured (4,394) 1,027,273,574 2.2% $ 2,306,700 1,024,966,874 2.29% Exempt 1,272 67,089,202 0.1% $ 67,089,202 - 0.00% TOTALS: 71,683 $ 45,804,575,315 100.00% $ 1,106,651,691 $ 44,697,923,624 100.00% ASSESSED VALUE by USE CATEGORY NET TAXABLE VALUE by USE CATEGORY Fiscal Year 2023-24 Fiscal Year 2023-24 ❑ All Others, ❑ Industrial, 6.65% 5.93% ❑ Commercial 9.50% - ❑ All Others, ❑ Industrial, 5.40% 5.56% ❑ Commercial, � 9.43% ❑ Residential, 79.61 % Residential, 77.93% Source: HdL Coren & Cone, Los Angeles County Assessor 2023/24 Combined Tax Rolls. 218 City of Santa Clarita Direct and Overlapping Property Tax Rates (rate per $100 of assessed value) Last Ten Fiscal Years Fiscal Year LOS ANGELES GENERAL COUNTY SCV WATER AGENCY COUNTY COUNTY SCHOOL SANITATION FLOOD DISTRICTS DISTRICTS CONTROL TOTAL 2014-15 1.000000 - 0.070600 0.118570 - - 1.189170 2015-16 1.000000 - 0.070600 0.116070 - - 1.186670 2016-17 1.000000 - 0.070600 0.119436 - - 1.190036 2017-18 1.000000 - 0.070600 0.135348 - - 1.205948 2018-19 1.000000 - 0.070600 0.496140 - - 1.566740 2019-20 1.000000 - 0.070600 0.357180 - - 1.427780 2020-21 1.000000 - 0.070600 0.404980 - - 1.475580 2021-22 1.000000 - 0.070600 0.384850 - - 1.455450 2022-23 1.000000 - 0.070600 0.368420 - - 1.439020 2023-24 1.000000 - 0.070600 0.374420 - - 1.445020 1.200000 1.000000 0.800000 0.600000 0.400000 0.200000 0.000000 DIRECT and OVERLAPPING PROPERTY TAX RATES Fiscal Year 2023-24 GENERAL SCHOOL DISTRICTS COUNTY FLOOD CONTROL LA COUNTY DISTRICTS Source: HdL Coren & Cone, Los Angeles County Assessor 2014/15 - 2023/24 Tax Rate Table 219 This page intentionally left blank. 220 City of Santa Clarita Direct and Overlapping Property Tax Rates (rate per $100 of assessed value) One Year Detail of Rates Producing Revenue for City and Associated Redevelopment Agencies City General Fund Direct Rates RDA Incremental Rate Total Direct Rate City Share Prop. 13 of 1% Total City plus applicable Roll Year per Prop. 13 Debt Rates Rates voter -approved debt 2023-24 0.086630 0.000000 0.086630 0.00000% 8.96500% Agency 2023-24 City of Santa Clarita Tax District 1 (249.01) 0.05920 SCV Water Agency (302.01) 0.06550 Children's Institutional Tuition Fund (400.21) 0.00327 Consolidated Fire Protection District of LA Co. (007.30) 0.18090 County School Service Fund Saugus Union (581.06) County School Service Hart William S. Hart (757.06) County School Services (400.15) Development Center Handicapped Saugus Union (581.07) Educational Augmentation Fund Impound (400.01) Educational Revenue Augmentation Fund (ERAF) (400.00) Greater LA Co. Vector Control (061.80) 0.00905 Notes: General fund tax rates are representative and based upon the direct and overlapping rates for the largest General Fund tax rates area (TRA) by net taxable value. Total Direct Rate is the 0.00039 weighted average of all individual direct 0.00165 rates applied by the government preparing 0.00104 the statistical section information. 0.13200 The percentages presented in the columns 0.05430 above do not sum across rows. In 1978 0.00031 Santa Clarita Library (249.56) 0.02740 LA County Fire - Ffw (007.31) 0.00550 LA County Flood Control Improvement District (030.10) 0.00217 LA County Flood Control Maintenance (030.70) 0.01210 LA County General (001.05) 0.18580 LA County Accum Cap Outlay (001.20) 0.00013 Saugus Union School District (581.01) 0.06280 Santa Clarita Community College (814.04) 0.04320 Santa Clarita Valley Sanitation Dist. LA Co. 0.00989 William S. Hart Elementary School Fund (757.07) 0.04940 William S. Hart Union High (757.02) 0.09400 Total Prop. 13 Rate: 1.00000 SCV Water Agency (302.01) 0.065500 Newhall Elementary School District Debt Services 1999 Ser. A (581.52) 0.008767 Newhall Elementary School District Debt Services 2011 Ser. A (581.54) 0.025189 William S. Hart Unified Debt Services 2001 Ser. B (757.52) 0.012636 William S. Hart Un.Hsd Debt Services 2008 Ser. B (757.54) 0.007226 William S. Hart Un.Hsd Debt Services 2008 Ser. C (757.56) 0.001254 William S. Hart Un.Hsd Debt Services 2013 Ref. Bds. (757.57) 0.009302 William S. Hart Un.Hsd Debt Services 2020 Ref. Bds. (757.59) 0.021255 Santa Clarita Community College Debt Services 2001 Ser. 2003 (814.52) 0.003109 Santa Clarita Community College Debt Services 2006 Ser. 2012 (814.56) 0.000060 Santa Clarita Community College Debt Services 2013 Refunding Bonds (814.57) - Santa Clarita Community College Debt Services 2006 Ser. 2014 (814.58) 0.001150 Santa Clarita Community College Debt Services 2016 Refunding Bonds (814.59) 0.005515 Santa Clarita Community College Debt Services 2006 Ser. 2016 (814.60) 0.001426 Santa Clarita Community College Debt Services 2016 Ser. 2017 (814.61) 0.003360 Santa Clarita Community College Debt Services 2016 Ser. 2019 (814.62) 0.009986 Santa Clarita Community College Debt Services 2019 Refunding Bonds (814.63) 0.003287 Santa Clarita Community College Debt Services 2021 Refunding Bonds (814.64) 0.009242 Santa Clarita Community College Debt Services 2016 Ser. 2022 (814.65) 0.000198 Total Tax Rate 0.188462 Source: HdL Coren & Cone, Los Angeles County Assessor 2023/24 Annual Tax Increment Tables 221 California voters passed Proposition 13, which set the property tax at a 1.00% fixed amount. This 1.00% is shared by all the taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter -approved bonds. City of Santa Clarita Principal Property Taxpayers Current Fiscal Year and Nine Fiscal Years Ago FISCAL YEAR 2023-24 PERCENT of Number TOTAL TOTAL CITY of ASSESSED ASSESSED OWNER/TAXPAYER Parcels VALUE VALUE Centennial VTC LLC 17 $ 420,485,726 0.96 % Azure HGI Vista Canyon ET AL 3 234,345,000 0.54 Park Sierra Properties 15 156,946,767 0.36 BEL Valencia LLC Lessor 9 147,917,798 0.34 Social Innovation Park Owner DE LLC 14 136,170,000 0.31 Wesco IV LLC 2 133,708,166 0.31 Saugus Colony Limited 19 132,086,706 0.30 IVT River Oaks Valencia LLC 7 127,310,857 0.29 Kaiser 7 116,773,113 0.27 EQR Valencia LLC 218 117,160,725 0.27 Total All Others Total Assessed Valuation 311 1,722,904,858 3.94 % 42,000,874,043 96.06 S 43,723,778,901 100.00 % NOTE: The amounts shown above include assessed value data for both the City and the Redevelopment Agency. Source: HdL Coren & Cone, Los Angeles County Assessor 2023/24 Combined Tax Rolls 222 City of Santa Clarita Principal Property Taxpayers (Continued) Current Fiscal Year and Nine Fiscal Years Ago FISCAL YEAR 2014-15 PERCENT of Number TOTAL TOTAL CITY of ASSESSED ASSESSED OWNER/TAXPAYER Parcels VALUE VALUE Valencia Town Center Ventura LP 17 $ 358,599,162 1.42 % Packard Humanities Institute 1 167,592,530 0.66 VTC Business Center LLC 9 138,800,017 0.55 Park Sierra Properties 15 132,347,680 0.52 Saugus Colony Limited 19 111,948,627 0.44 EQR Valencia LLC 218 99,428,019 0.39 EQR The Oaks LLC 28 97,365,194 0.39 RREEF America Reit II Corporation 2 79,368,053 0.31 Walmart/Sam's 5 69,983,006 0.28 Time Warner Cable 4 11,463,709 0.05 318 1,266,895,997 5.01 % 24,001,096,397 94.99 S 25,267,992,394 100.00 % 223 City of Santa Clarita Property Tax Levies, Tax Collections and Delinquencies Last Ten Fiscal Years FISCAL YEAR TAXES LEVIED COLLECTIONS COLLECTIONS PERCENT INSUBSEQUENT COLLECTIONS YEARS TOTAL COLLECTIONS TO DATE PERCENT COLLECTIONS TO DATE 2014-15 23,131,317 22,795,838 98.5% - 22,795,838 98.55% 2015-16 24,304,887 23,957,604 98.6% - 23,957,604 98.57% 2016-17 25,483,385 25,178,564 98.8% - 25,178,564 98.80% 2017-18 27,299,254 26,957,834 98.7% - 26,957,834 98.75% 2018-19 28,692,974 28,469,759 99.2% - 28,469,759 99.22% 2019-20 30,653,870 30,235,002 98.6% - 30,235,002 98.63% 2020-21 32,544,160 32,250,334 99.1% - 32,250,334 99.10% 2021-22 33,543,481 33,231,723 99.1% - 33,231,723 99.07% 2022-23 36,147,363 35,692,965 98.7% - 35,692,965 98.74% 2023-24 39,092,576 38,720,597 99.0% 38,720,597 99.05% TAX COLLECTIONS & DELINQUENCY - LAST TEN FISCAL YEARS 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 FISCALYEAR ■LEVIES OCOLLECTIONS DELINQUENT AMOUNT NOTES: Article XIII-A of the Constitution of the State of California, adopted by the electorate in June 1978, precludes the City from a local property tax levy. All general-purpose property taxes are levied by the County and allocated to other governmental entities on a predetermined formula. The above figures include secured property taxes only. Prior to the implementation of GASB 44 in FY 2006, collections in subsequent years were not required to be reported by tax year. Beginning in FY 2007, collections in subsequent years are included. Source: County of Los Angeles, Department of Auditor -Controller 224 City of Santa Clarita Successor Agency Top Property Owners Based on Net Values Fiscal Year 2023-24 Owner 1 COV-SAUGUS B LLC 2 SPECTRUM PACIFIC WEST LLC (Pending Appeals On Parcels) 3 COV SC LAND 4 LA RAILROAD 93 LLC 5 NEWHALL BLISS LLC 6 NEWHALL CROSSING LLC 7 JDH 8 HASA INC (Pending Appeals On Parcels) 9 SANTA CLARITA MEDICAL CENT] 10 TELFAIR CORPORATION Top Ten Total Agency Total Incremental Net AV Total Source: HdL Coren & Cone Secured Unsecured Combined Parcels Value % of parcels Values % of Value % of Net AV Net AV Net AV 5 $ 111,894,000 11.61% 111,894,000 10.43% 3 53,410,472 48.76% 53,410,472 4.98% 6 43,043,961 4.47% 24 $ 32,717,442 3.40% 10 31,592,400 3.28% 3 25,564,160 2.65% 3 12,630,540 1.31% 1 11,692,353 1.21% 2 10,060,662 1.04% 54 $ 279,195,518 28.97% 963,680,212 $ 717,421,467 38.92% 3 11,783,035 10.76% $ 43,043,961 4.01% 32,717,442 3.05% 31,592,400 2.94% 25,564,160 2.38% 12,630,540 1.18% 11,783,035 1.10% 11,692,353 1.09% 10,060,662 0 6 $ 65,193,507 59.51% $ 344,389,025 32.09% 109, 541,902 1,073, 222,114 $ 91,610,250 71.16% $ 809,031,717 42.57% 225 This page intentionally left blank. 226 City of Santa Clarita Successor Agency Project Area Assessment Appeals Summary and Tax Collection History Fiscal Years 2014-15 Through 2023-24 Project Area Assessment Appeals Summary—FY 2023-24 Estimated Reduction Total No. of No. of Resolved No. of Successful Average No. & Value of Estimated No. of on Pending Appeals Appeals Appeals Appeals Reduction Appeals Pending Appeals Allowed Allowed 203 157 129 16.3% 46 / $287,627,676 38 $ 38,474,850 Tax Collection History For Fiscal Years 2014-15 Through 2023-24 Current Year Current Year Prior Year Collection Total Collection Year Tax Levy Collection Collection Total Percentage Percentage 2014-15 3,836,835 3,185,967 158,652 3,344,619 83% 87% 2015-16 3,579,829 3,430,748 518,292 3,704,259 96% 103% 2016-17 4,063,020 3,819,731 797,178 3,983,145 94% 98% 2017-18 4,188,893 3,944,498 860,267 4,046,235 94% 97% 2018-19 4,405,493 4,363,813 2,142,067 5,328,034 99% 121% 2019-20 4,715,737 4,618,068 1,503,717 4,689,684 98% 99% 2020-21 5,123,622 5,012,407 (66,406) 4,946,001 98% 97% 2021-22 5,758,932 5,718,046 533,235 6,251,281 99% 109% 2022-23 7,531,776 7,432,174 883,716 8,315,890 99% 110% 2023-24 8,269,362 8,140,932 153,624 8,294,556 98% 100% Source: Los Angeles County Auditor/Controller Ledgers and special reports pursuant to AB X 26. 227 City of Santa Clarita Charge Detail Report for CFD 2002-1 (Valencia Town Center) Fiscal Year 2023-24 ASSESSOR'S PARCEL NUMBER PROPERTY OWNER LAND ASSESSED VALUES ($) STRUCTURE ASSESSED VALUES ($) TOTAL ASSESSED VALUES ($) TAXABLE ACREAGE 2861-058-071 Valencia Town Center Venture LP $ 1,406,771 $ 214,359 $ 1,621,130 0.84 2861-058-072 Valencia Town Center Venture LP 3,899,354 20,271,956 24,171,310 4.81 2861-058-073 Valencia Town Center Venture LP 30,815,291 3,797,301 34,612,592 15.68 2861-058-076 Valencia Town Center Venture LP 981,638 97,490 1,079,128 1.18 2861-058-077 Valencia Town Center Venture LP 5,300,441 453,370 5,753,811 6.70 2861-058-081 Valencia Town Center Venture LP 17,924,959 192,422,963 210,347,922 14.34 2861-058-084 Valencia Town Center Venture LP 3,697,818 10,718,333 14,416,151 2.05 2861-058-085 Valencia Town Center Venture LP 482,316 241,154 723,470 0.33 Totals: $ 64,508,588 $ 228,216,926 $ 292,725,514 45.94 228 City of Santa Clarita Charge Detail Report for CFD 2002-1 (Valencia Town Center) (Continued) Fiscal Year 2023-24 ASSESSOR'S PARCEL NUMBER CLASS MAX TAX RATE ($) MAX TAX APPLIED RATE M CHARGE ($) 2861-058-071 1 $ 40,928 $ 34,547 $ 29,858 $ 25,700 2861-058-072 1 40,928 196,861 29,858 146,450 2861-058-073 1 40,928 641,826 29,858 477,469 2861-058-076 1 40,928 48,458 29,858 36,049 2861-058-077 1 40,928 274,215 29,858 203,995 2861-058-081 1&2 40,927.54 & 40,938.71 586,977 29,862 436,666 2861-058-084 1 40,928 83,901 29,858 62,416 2861-058-085 1 40,928 13,424 29,858 9,987 $ 1,880,210 $ 1,398,732 229 City of Santa Clarita Ratio of Outstanding Debt by Type Last Ten Fiscal Years GOVERNMENTAL ACTIVITIES FISCAL CERTIFICATES PRIVATE PURCHASE GASB 87 GASB 96 YEAR OF PARTICIPATION (1) (3) LOANS BONDS (2) PLACEMENT LEASE (5) FINANCE LEASES (6) SUBSCRIPTION (7) 2014-15 8,128,138 15,175,988 300,000 11,673,964 - 217,615 2015-16 - - 200,000 26,012,352 6,328,411 138,877 2016-17 100,000 25,262,456 4,984,543 60,444 2017-18 - 40,380,831 3,595,740 32,200 2018-19 65,333,412 2,177,480 2,538 2019-20 65,085,696 730,371 497,583 2020-21 77,875,819 - 542,094 - - 2021-22 75,762,440 129,277 880,316 3,605,688 2022-23 92,553,433 97,376 544,549 2,843,206 2023-24 89,592,169 64,218 369,641 2,393,602 NOTES: (1) In 1991 the Santa Clarita Public Financing Authority issued $22,940,000 aggregate principal amount of Local Agency (Redevelopment) Revenue Bonds Series 1991. Simultaneously with the receipt of the Bond proceeds, the Authority acquired $22,940,000 Certificates of Participation issued by the Santa Clarita Redevelopment Agency, of which the proceeds were transferred to the City to finance and/or refinance the design, acquisition, improvement or construction of land, the City Hall Building and certain road improvements, and to refinance certain debt. The Agency leased back the facilities to the City for lease payments to be made by the City to the Authority equal to the principal and interest due on the revenue bonds. At this point in time, the Agency is not active. -The 1991 Series certificates were later refunded in fiscal year 1997-98 by the Certificates of Participation Series 1997 of $19,670,000. As a result, the 1991 Series certificates are considered to be defeased and the liability for those certificates was removed from the general long-term debt. -On July 1, 2005, the Santa Clarita Public Financing Authority issued $17,700,000 in Certificates of Participation to advance refund $17,640,000 of outstanding 1997 Series certificates. As a result, the 1997 Series were considered defeased and the liability for those certificates was removed from the long- -On July 15, 2015, the Santa Clarita Public Financing Authority entered into a Private Placement Lease agreement for $6,985,000 to refinance the outstanding 2005 Series certificates. As a result, the 2005 Series were considered defeased and the liability for those certificates was removed from the long-term liability. -In November 2001, the Santa Clarita Public Financing Authority issued $3,200,000 in Certificates of Participation for the acquisition of parkland. In 2006 the COP Series 2001 were considered defeased and the liability for those certificates was removed from the general long-term debt. (2) On January 16, 2007, the Santa Clarita Public Financing Authority issued $13,785,000 Lease Revenue Bonds (Golden Valley Road), Series 2007 for the acquisition of right-of-way. - On June 22, 2016, the Santa Clarita Public Financing Authority issued $10,320,000 in Series 2016A Lease Revenue Bonds (Golden Valley Road) to'advance refund $11,260,000 of outstanding 2007 Series bonds. As a result, the 2007 Series were considered defeased and the liability'for those bonds was removed from the general long-term debt. - On June 22, 2016, the Santa Clarita Public Financing Authority issued $14,020,000 in Series 2016B Lease Revenue Refunding Bonds (OSPD) to advance refund $15,070,000 of outstanding 2007 Series certificates. - On June 1, 2018, the Santa Clarita Public Financing Authority issued $15,300,000 in Lease Revenue Bonds for the acquisition and retrofit of streetlights located within the City from Southern California Edison. - On June 27, 2019, the Santa Clarita Public Financing Authority issued $25,850,000 in Lease Revenue bond proceeds for the construction of'a new Sheriff Station facility. - On October 22, 2020, the Santa Clarita Public Financing Authority issued $10,645,000 in Series 2020A Lease Revenue Bonds and $3,625,000 in'Series 202OA-T Federally Taxable Lease Revenue Bonds to provide funds in the acquisition of a recreational facility. - Deferred amount for issuance premium, net of discount is included above. (3) On December 1, 2007, the Santa Clarita Public Financing Authority issued $15,525,000 in Certificates of Participation for the acquisition of open space -On June 22, 2016, the Santa Clarita Public Financing Authority issued $14,020,000 in Series 2016B Lease Revenue Refunding Bonds (OSPD) to advance refund $15,070,000 of outstanding 2007 Series certificates. As a result, the 2007 Series were considered defeased and the liability for those bonds was removed (4) On June 1, 2008, the Santa Clarita Redevelopment Agency issued $29,860,000 in Non -Housing Tax Allocation Bonds and $8,850,000 in Low/Mod Housing Tax Allocations Bonds to fund certain redevelopment projects within the Newhall Redevelopment Project area. Upon the dissolution of redevelopment agencies in the State of California effective February 1, 2012, the bonds were transferred to the RDA Successor Agency. -Deferred amount for issuance premium, net of discount is included above. Sources: City of Santa Clarita, Administrative Services Department - Finance Division 230 City of Santa Clarita Ratio of Outstanding Debt by Type (Continued) Last Ten Fiscal Years PERCENTAGE SUCCESSORAGENCY BUSINESS -TYPE ACTIVITIES OF OUTSTANDING TAX TOTAL TAXABLE DEBT DEBT TO GOVERNMENTAL ALLOCATION GRAND LEASE PRIMARY ASSESSED PER PERSONAL ACTIVITIES TOTAL BONDS (4) TOTAL PAYABLE TOTAL GOVERNMENT VALUE CAPITA INCOME 35,495,705 - 32,679,640 35,495,705 0.14% 166 N/A 32,679,640 30,407,443 32,679,640 0.12% 149 N/A 30,407,443 - 78,802,979 30,407,443 0.11% 141 N/A 44,008,771 34,794,208 101,473,977 44,008,771 0.14% 203 N/A 67,513,430 33,960,547 99,420,537 67,513,430 0.21% 310 N/A 66,313,650 33,106,887 110,641,139 66,313,650 0.19% 299 N/A 78,417,913 32,223,226 115,277,975 78,417,913 0.21% 354 N/A 80,377,721 31,294,566 129,207,675 80,377,721 0.21% 351 N/A 96,038,564 30,325,905 129,207,675 96,038,564 0.23% 416 N/A 92,419,630 29,307,245 124,120,477 92,419,630 0.21% 401 N/A (5) On July 15, 2015, the Santa Clarita Public Financing Authority entered into a Private Placement Lease agreement for $6,985,000 to refinance the outstanding 2005 Series certificates. '(6) On July 1, 2021, the City of Santa Clarita adopted Governmental Account Standards Board Statement No. 87 Leases . '(7) On July 1, 2022, the City of Santa Clarita adopted Governmental Account Standards Board Statement No. 96 Subscription -Based Technology Arrangements. 450 400 350 300 250 200 150 100 50 OUTSTANDING DEBT PER CAPITA Last Ten Fiscal Years 14-15 15-16 16-17 17-18 18-19 19-20 Fiscal Year 20-21 21-22 22-23 23-24 231 City of Santa Clarita Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years PERCENTAGE OUTSTANDING GENERAL BONDED DEBT OF TAXABLE DEBT FISCAL REVENUE CERTIFICATES OF ASSESSED PER YEAR POPULATION (1) BONDS PARTICIPATION TOTAL VALUE CAPITA 2014-15 213,231 11,673,964 23,304,126 34,978,090 0.13% 164 2015-16 219,611 26,012,352 - 26,012,352 0.10% 118 2016-17 216,350 25,262,456 - 25,262,456 0.09% 117 2017-18 216,589 40,380,831 - 40,380,831 0.13% 186 2018-19 218,103 65,333,412 - 65,333,412 0.20% 300 2019-20 221,932 65,085,696 - 65,085,696 0.19% 293 2020-21 221,572 77,875,819 - 77,875,819 0.21% 351 2021-22 228,835 75,762,440 - 75,762,440 0.19% 331 2022-23 230,659 92,553,433 - 92,553,433 0.22% 401 2023-24 230,428 89,592,169 - 89,592,169 0.20% 389 450 400 350 300 250 200 150 100 50 GENERAL BONDED DEBT OUTSTANDING PER CAPITA Last Ten Fiscal Years 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Fiscal Year Source: (1) State of California, Finance Department 232 City of Santa Clarita Direct and Overlapping Tax and Assessment Debt June 30, 2024 2023-24 Assessed Valuation: $44,635,716,372 (Net of Redevelopment Agency Incremental Value of $809,031,717) 2023-24 Population: 230,428 Percent City's Share Total Debt Applicable of Debt 06/30/2024 To City (1) 06/30/2024 DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: Santa Clarita Community College District $ 370,229,812 77.52% $ 287,016,959 William S. Hart Union High School District $ 279,610,597 77.52% $ 216,742,950 William S. Hart Union High School District Community Facilities District No. 90-1 $ 35,000 100% $ 35,000 William S. Hart Union High School District Community Facilities District No. 2005-1 $ 12,515,000 100% $ 12,515,000 William S. Hart Union High School District Community Facilities District No. 2015-1 $ 24,240,000 100% $ 24,240,000 Los Angeles Community College and Unified School Districts $ 15,879,230,000 0.000005% - 0.00001% $ 1,330 Castaic Union School District $ 23,085,000 27.54% $ 6,357,147 Newhall School District $ 1,305,000 61.01% $ 796,154 Newhall School District School Facilities Improvement District No. 2011-1 $ 53,960,000 63.53% $ 34,278,630 Saugus Union School District $ 159,248 96.08% $ 153,010 Saugus Union School District School Facilities Improvement District No. 2014-1 $ 119,210,000 97.82% $ 116,605,262 Saugus Union School District Community Facilities District No. 2005-1 $ 12,800,000 100% $ 12,800,000 Saugus Union School District Community Facilities District No. 2006-1, Improvement Area No. 1 $ 24,475,000 100% $ 24,475,000 Saugus Union School District Community Facilities District No. 2006-1, Improvement Area No. 2 $ 18,765,000 100% $ 18,765,000 Saugus Union School District Community Facilities District No. 2006-1, Improvement Area No. 3 $ 17,995,000 100% $ 17,995,000 Saugus Union School District Community Facilities District No. 2006-2, Improvement Area No. 1 $ 10,710,000 100% $ 10,710,000 Saugus Union School District Community Facilities District No. 2006-2, Improvement Area No. 2 $ 6,080,000 100% $ 6,080,000 Saugus Union School District Community Facilities District No. 2006-2, Improvement Area No. 3 $ 13,010,000 100% $ 13,010,000 Saugus Union School District Community Facilities District No. 2019-1 $ 9,075,000 100% $ 9,075,000 Saugus -Hart School District Community Facilities District No. 2000-1 $ 6,060,000 100% $ 6,060,000 Community Facilities District No. 2006-1C $ 12,575,000 100% $ 12,575,000 Sulphur Springs Union School District $ 70,320,617 94.76% $ 66,635,817 Sulphur Springs Union School District No 2002-1 $ 20,885,000 100% $ 20,885,000 Sulphur Springs Union School District No 2006-1 $ 22,145,879 100% $ 22,145,879 Sulphur Springs Union School District No 2014-1 $ 18,300,000 100% $ 18,300,000 City of Santa Clarita Community Facilities District No. 2002-1 $ 10,665,000 100% $ 10,665,000 City of Santa Clarita Community Facilities District No. 2016-1 $ 16,890,000 100% $ 16,890,000 City of Santa Clarita 1915 Act Bonds $ 225,000 100% $ 225,000 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $ 986,033,138 DIRECT AND OVERLAPPING GENERAL FUND DEBT. Los Angeles County General Fund Obligations $ 2,479,229,730 .02% $ 55,460,369 Los Angeles County Superintendent of Schools Certificates of Participation $ 2,857,300 2.24% $ 63,918 Santa Clarita Community College District Certificates of Participation $ 4,910,000 77.52% $ 3,806,428 William S. Hart Union High School District General Fund Obligations $ 56,448,432 77.52% $ 43,756,567 Castaic Union School District Certificates of Participation $ 2,520,000 27.54% $ 693,958 Sulphur Springs Union School District Certificates of Participation $ 28,880,000 94.76% $ 27,366,688 Los Angeles Unified School District Certificates of Participation $ 471,590,000 0.0000001% $ 47 City of Santa Clarita Obligations $ 92,419,630 100% $ 92,419,630 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 223,567,605 Total Net Direct and Overlapping General Fund Debt $ 223,567,605 OVERLAPPING TAX INCREMENT DEBT (Successor Agency l $ 28,695,000 100% $ 28,695,000 Total Direct Debt $ 92,419,630 Gross Total Overlapping Debt $ 1,145,876,113 Net Total Overlapping Debt $ 1,145,876,113 GROSS COMBINED TOTAL DEBT $ 1,238,295,743 NET COMBINED TOTAL DEBT $ 1,238,295,743 (1) Percentage of overlapping debt applicable to the city is estimated using taxable assed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non -bonded capital lease obligations. Ratios to 2023-24 Assessed Valuation: Total Overlapping Tax and Assessment Debt. ........ ........... Total Direct Debt($92,419,630)...............................................................................0.21% Combined Total Debt.._._._._._.............................................................................. 2.77% Ratios to Redevelopment Successor Agency Incremental Valuation ($809.031.717): Total Overlapping Tax Increment Debt.._._._._._._._._._._._. ---------------------------------3.55% Source: California Municipal Statistics, Inc 233 Assessed valuation Conversion percentage Adjusted assessed valuation Debt limit percentage Debt limit Total net debt applicable to limit: General obligation bonds Legal debt margin Total debt applicable to the limit as a percentage of debt limit City of Santa Clarita Legal Debt Margin Information Last Ten Fiscal Years FISCAL YEAR 23-24 22-23 21-22 20-21 19-20 $ 44,635,716,372 25% $ 41,356,729,027 25% $ 38,390,714,609 25% $ 36,983,412,434 25% $ 35,174,818,421 25% 11,158,929,093 15% 10,339,182,257 15% 9,597,678,652 15% 9,245,853,109 15% 8,793,704,605 15% 1,673, 839,364 1,550,877,339 1,439,651,798 1,386,877,966 1,319,05 5,691 $ 1,673,839,364 $ 1,550,877,339 $ 1,439,651,798 $ 1,386,877,966 $ 1,319,055,691 0% 0% 0% 0% 0% Section 43605 of the Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from current full valuation perspective to the 25% level that was in effect at the time the legal debt margin was enacted by the State of California for local governments located within the State. Source: City of Santa Clarita, Administrative Services Department - Finance Division 234 Assessed valuation Conversion percentage Adjusted assessed valuation Debt limit percentage Debt limit Total net debt applicable to limit: General obligation bonds Legal debt margin Total debt applicable to the limit as a percentage of debt limit City of Santa Clarita Lcgal Debt Margin Information (Continued) Last Ten Fiscal Years FISCAL YEAR 18-19 17-18 16-17 15-16 14-15 $ 32,480,968,597 $ 30,727,345,419 $ 28,685,821,032 $ 27,330,863,338 $ 26,111,942,635 25% 25% 25% 25% 25% 8,120,242,149 7,681,836,355 7,171,455,258 6,832,715,835 6,527,985,659 15% 15% 15% 15% 15% 1,218,036,322 1,152,275,453 1,075,718,289 1,024,907,375 979,197,849 $ 1,218,036,322 $ 1,152,275,453 $ 1,075,718,289 $ 1,024,907,375 $ 979,197,849 0% 0% 0% 0% 0% LEGAL DEBT MARGIN c Last Ten Fiscal Years 0 c 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 Fiscal Year 235 City of Santa Clarita Pledged Revenue Coverage Last Ten Fiscal Years TRANSIT LESS NET Fiscal TRANSIT OPERATING AVAILABLE DEBT SERVICE Year REVENUES(l) EXPENSES (2) REVENUES Principal Interest COVERAGE 2014-15 24,008,186 28,292,380 (4,284,194) 2015-16 26,853,481 28,327,301 (1,473,820) 2016-17 28,652,461 30,231,012 (1,578,551) 2017-18 29,124,857 30,654,674 (1,529,817) 2018-19 38,089,054 32,224,652 5,864,402 2019-20 25,891,432 31,223,995 (5,332,563) 2020-21 44,346,540 28,270,373 16,076,167 2021-22 41,177,219 31,581,746 9,595,473 2022-23 39,170,359 35,660,261 3,510,098 2023-24 29,879,980 34,441,623 (4,561,643) NOTE: (1) Includes Other revenues, Transfers in and Capital contributions (2) Includes Transfers out and Other expenses 236 City of Santa Clarita Demographic and Economic Statistics Last Ten Calendar Years AVERAGE AVERAGE PER CITY OF ANNUAL LOS ANGELES ANNUAL CAPITA TOTAL SANTA CLARITA PERCENTAGE COUNTY PERCENTAGE PERSONAL PERSONAL UNEMPLOYMENT YEAR POPULATION (1) INCREASE POPULATION (1) INCREASE INCOME (2) INCOME (2) RATE (3) 2015 213,231 1.96% 10,136,559 0.94% 54,526 727,377,241 6.40% 2016 219,611 2.99% 10,241,335 1.03% 57,160 760,828,529 4.70% 2017 216,350 -1.48% 10,241,278 0.00% 60,087 802,394,100 4.40% 2018 216,589 0.11% 10,283,729 0.41% 63,913 849,493,416 5.10% 2019 218,103 0.70% 10,253,716 -0.29% 66,684 881,215,471 4.80% 2020 221,932 1.76% 10,172,951 -0.79% 69,805 915,132,543 13.60% 2021 221,572 -0.16% 10,044,458 -1.26% 75,821 985,475,353 7.30% 2022 228,835 3.28% 9,861,224 -1.82% 76,445 984,030,663 4.70% 2023 230,659 0.80% 9,761,210 -1.01% N/A N/A 5.30% 2024 230,428 -0.10% 9,824,091 0.64% N/A N/A 6.20% 4.50% 3.50% 2.99% 2.50% 1.960 1.50% 0.50% -0.50% 2015 2016 -1 -1.50% POPULATION INCREASE Last Ten Fiscal Years 1.76% H 0.11% - .1 �/ 7 018 2019 2020 2021 YEAR 3.28% 0% \10% 2022 2023 2024 Sources: (1) State of California, Finance Department, as of 1/l/2024: E-1 (2) U.S. Department of Commerce, Bureau of Economic Analysis (BEA) Personal Income and Unemployment rates are for the regional area, Los Angeles. The City's related information is not available. Information lags two years. (3) State of California, Department of Employment Development (EDD), for the month of July 2024 Note: Reduction in 2017 population numbers due to change in the county controls. The primary factor was a lowering of the estimated school enrollment. 237 City of Santa Clarita Principal Employers Current Fiscal Year and Nine Fiscal Years Ago 2024* 2015 PERCENT PERCENT NUMBER of NUMBER of of TOTAL of TOTAL EMPLOYER EMPLOYEESEMPLOYMENT EMPLOYER EMPLOYEESEMPLOYMENT Six Flags Magic Mountain 3,000 15.07% Six Flags Magic Mountain 3,200 11.35% Henry Mayo Newhall Memorial Hospital 1,683 8.46% Princess Cruises 1,885 6.69% Henry Mayo Newhall Princess Cruises 901 4.53% Memorial Hospital 1,640 5.82% The Master's College 889 4.47% Quest Diagnostics 850 3.02% Advanced Bionics 723 3.63% Boston Scientific 780 2.77% Woodward HRT 710 3.57% The Master's College 760 2.70% Boston Scientific 649 3.26% Woodward HRT 728 2.58% Logix 679 3.41% Advanced Bionics 700 2.48% Amazon 580 2.91% Cal Arts 690 2.45% AMS Fulfillment 489 2.46% Walmart 624 2.21% Largest firms �� 10,303 51.76% Largest firms �� 11,857 42.07% All others 9,601 48.24% All others 16,329 57.93% Grand total 19,904 100.00% Grand total 28,186 100.00% * As of August 2024 NOTE: (1)Non-governmental employers Source: 2024 Economic Outlook Santa Clarita Valley Economic Dev Corp & College of the Canyons 238 Function General government Public safety (1) Public works Community development Recreation and Comm Svcs Neighborhood Services (2) Transit Totals 600.00 500.00 400.00 300.00 200.00 100.00 0.00 City of Santa Clarita Full -Time and Part -Time City Employees by Function Last Ten Fiscal Years FISCAL YEAR 23-24 22-23 (3) 21-22 20-21 19-20 18-19 17-18 16-17 15-16 14-15 173.50 172.50 87.50 85.00 84.00 81.00 76.00 76.00 91.00 87.60 93.00 94.00 142.50 141.50 141.50 139.50 126.50 128.50 131.50 125.00 63.50 63.50 46.00 45.00 45.00 44.00 43.00 44.00 37.00 41.00 53.40 53.40 69.50 67.25 68.25 68.25 63.90 63.90 112.15 111.15 86.50 84.50 105.60 103.60 102.60 99.60 79.00 74.00 - - 10.00 10.00 10.00 10.00 10.00 10.00 12.00 12.00 12.00 11.00 479.90 477.90 461.10 452.35 451.35 442.35 400.40 398.40 383.65 375.75 CITY OF SANTA CLARITA - EMPLOYEES Last Ten Fiscal Years 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 Fiscal Year (1) Police and Fire services are provided by the County (2) The Neighborhood Services department was added for FY 2016-17 (3) Citywide reorganization effective FY 2022-23 Source: City of Santa Clarita, Adopted Budget -Funded Regular Fulltime Equivalent Positions 239 Function Police: Parking citations issued (i) Parking revenue collected Public works: Street resurfacing (miles) Parks and Recreation: Number of recreation classes Number of facility rentals (times) Transit: Number of customers served (2) City of Santa Clarita Operating Indicators by Function Last Ten Fiscal Years FISCAL YEAR 23-24 22-23 21-22 20-21 19-20 21,787 23,512 18,651 11,359 13,992 $ 972,705 $ 1,101,410 $ 747,323 $ 417,978 $ 516,477 20.0 24.0 58.2 28.0 38.7 1,572 1,518 2,038 1,593 2,197 12,097 7,078 12,096 10,016 11,778 2,056,971 2,453,098 1,900,958 1,673,828 2,131,694 NOTE: (1) The City contracts with Data Ticket Inc. for its parking enforcement services. The number of citations issued and money collected are within the City's boundaries. (2) Number of customers served includes those outside of the City boundaries. Source: City of Santa Clarita, Administrative Services Department - Finance Division 240 Function Police: Parking citations issued (i) Parking revenue collected Public works: Street resurfacing (miles) Parks and Recreation: Number of recreation classes Number of facility rentals (times) Transit: Number of customers served (2) City of Santa Clarita Operating Indicators by Function (Continued) Last Ten Fiscal Years FISCAL YEAR 18-19 17-18 16-17 15-16 14-15 24,214 15,505 13,133 9,035 4,765 $ 364,954 $ 498,749 $ 470,843 $ 379,384 $ 320,682 26.0 38.9 45.0 15.5 80.0 2,773 2,903 2,992 2,918 2,189 12,787 12,013 19,924 13,390 19,018 2,680,202 2,775,327 2,864,351 3,167,021 3,422,015 241 Function Public works: Streets (miles) Street lights (1) Traffic signals (City Jurisdiction) Traffic signals (Joint Jurisdiction) Parks and recreation: Number of parks Community centers Transit: Stations City of Santa Clarita Capital Assets Statistics by Function Last Ten Fiscal Years FISCAL YEAR 23-24 22-23 21-22 20-21 19-20 18-19 17-18 16-17 15-16 14-15 597 596 573 573 570 540 540 537 516 497 18,832 18,832 18,703 18,622 18,662 18,662 18,662 17,843 17,843 17,843 202 200 199 198 195 187 187 186 180 180 2 4 4 4 4 5 5 5 5 5 36 35 35 34 33 32 32 32 32 32 2 2 2 2 2 2 2 2 2 2 6 4 4 4 4 4 4 4 4 4 (1) The City of Santa Clarita assumed responsibility for the Streetlight Maintenance District from Los Angeles County in 1998. Subsequently, between 2019 and 2021 the City purchased the majority of streetlights from Southern California Edison and converted the lights to LED. At this time, the City owns and responsible for 18,832 streetlights, inclusive of Highway Safety Lights which are attached to traffic signals. Source: City of Santa Clarita, Administrative Services Department - Finance Division 242 This page intentionally left blank vi THE PUN GROUP ACCOUNTANTS & ADVISORS December 27, 2024 To the Honorable Mayor and Members of the City Council of the City of Santa Clarita Santa Clarita, California 200 E. Sandpointe Avenue, Suite 600 Santa Ana, California92707 www.pungroup.cpa (M We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Santa Clarita, California (the "City") and the financial statements of Air Quality Improvement Special Revenue Fund, Transit Enterprise Fund, and Open Space Preservation District Special Revenue Fund for the year ended June 30, 2024. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, and Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated May 14, 2024. Professional standards also require that we communicate the following information related to our audit. Significant Audit Matters Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note I to the basic financial statements. No other new accounting policies were adopted and the application of existing policies was not changed during 2024. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City's financial statements were: • Management's estimate of the investment fair market value is based on information provided by U.S. Bank, the custodian of the investments based on interactive data. We evaluated the methods, assumptions and data used to develop the investment fair market value in determining that it is reasonable in relation to the financial statements taken as a whole. Management's estimate of the depreciation and amortization on capital assets is based on the industry standard and past experience on actual useful life of the asset groups. We evaluated the key factors and assumptions used to develop the depreciation on capital assets in determining that it is reasonable in relation to the financial statements taken as a whole. • Management's estimate of the net pension liabilities is based on the actuarial valuation on total pension liability and based on audited financial statements on fiduciary net position for CAPERS plans. We evaluated the key factors and assumptions used to develop the net pension liability in determining that it is reasonable in relation to the financial statements taken as a whole. ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor and Members of the City Council of the City of Santa Clarita Santa Clarita, California Page 2 • Management's estimate of the net other postemployment benefits ("OPEB") liability is based on the actuarial valuation on total OPEB liability and financial statements on fiduciary net position. We evaluated the key factors and assumptions used to develop the OPEB liability in determining that it is reasonable in relation to the financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were: • Note I — Summary of Significant Accounting Policies • Note 13 — Pension Plan • Note 14 — Other Postemployment Benefits ("OPEB") • Note 21 — Commitments and Contingencies The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit's financial statements taken as a whole. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated December 27, 2024. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. To the Honorable Mayor and Members of the City Council of the City of Santa Clarita Santa Clarita, California Page 3 Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to the Management's Discussion & Analysis, Budgetary Comparison Schedules, the Schedules of Changes in Net Pension Liability and Related Ratios, the Schedules of Contributions — Pensions, the Schedules of Changes in Net OPEB Liability and Related Ratios, and Schedules of Contributions — Other Postemployment Benefits, which are Required Supplementary Information ("RSI") that supplement the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the Combining and Individual Fund Financial Statements, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the Introductory and the Statistical Sections, which accompany the financial statements but are not RSL Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Restriction on Use This information is intended solely for the information and use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Z'If, c ' Santa Ana, California City of Santa Clarita Santa Clarita, California Independent Accountants' Report on Applying Agreed -Upon Procedures to Appropriations Limit Schedule For the Year Ended June 30, 2024 THE PUN GROUP ACCOUNTANTS & ADVISORS THE PUN GROUP ACCOUNTANTS & ADVISORS 200 E. Sandpointe Avenue, Suite 600 Santa Ana, California92707 www.pungroup.cpa (M INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED -UPON PROCEDURES To the Honorable Mayor and Members of City Council of the City of Santa Clarita Santa Clarita, California We have performed the procedures enumerated below on the appropriation limit schedule of the City of Santa Clarita, California (the "City") for the year ended June 30, 2024. The City's management is responsible for the Appropriations Limit Schedule. The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution, which was agreed to by the City and the League of California Cities (as presented int eh publication entitled Agreed -upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution). This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The procedures and associated findings are as follows: 1. We obtained the completed worksheets used by the City to calculate its appropriations limit for the year ended June 30, 2024, and verified that the limit and annual calculation factors were adopted by resolution of the City Council. We also verified that the population and inflation options were selected by a recorded vote of the City Council. Finding: No exceptions were noted as a result of our procedures. 2. For the accompanying Appropriations Limit Schedule, we added the prior year's limit to the total adjustments, and agreed the resulting amount to the current year's limit. Finding: No exceptions were noted as a result of our procedures. 3. We verified the current year information presented in the accompanying Appropriations Limit Schedule to corresponding information in worksheets used by the City. Finding: No exceptions were noted as a result of our procedures. 4. We verified the appropriations limit presented in the accompanying Appropriations Limit Schedule to the appropriations limit adopted by the City Council. Finding: No exceptions were noted as a result of our procedures. ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California Page 2 We were engaged by the City to perform this agreed -upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Appropriations Limit Schedule. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed -upon procedures engagement. This report is intended solely for the information and use of the City Council and the management of the City and is not intended to be and should not be used by anyone other than these specified parties. 'r, '6' 4wtA , 1-17' Santa Ana, California December 20, 2024 City of Santa Clarita Appropriations Limit Schedule For the Year Ended June 30, 2024 Amount A. Appropriations Limit FY 2022-2023 $ 508,593,284 B. Calculation Factors: 1) Population increase % 2) Inflation increase % 3) Total adjustment % C. Annual Adjustment Increase D. Other Adjustments: 1) Loss responsibility (-) 2) Transfer to private (-) 3) Transfer to fees (-) 4) Assumed responsibility (+) E. Total Adjustments F. Appropriations Limit FY 2023-2024 Source Prior year appropriations limit adopted by the City 1.0071 California Department of Finance 1.0444 California Department of Finance 1.0518 (BI x 132) 26,352,883 {(133-1) x A} - N/A - N/A - N/A - N/A 26,352,883 (C + D) $ 534,946,167 (A + E) See Accompanying Notes to the Appropriations Limit Schedule. 3 City of Santa Clarita Notes to the Appropriations Limit Schedule For the Year Ended June 30, 2024 Note 1— Purpose of Limited Procedures Review Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIIB, the annual calculation of the appropriations limit is subject to an agreed upon procedures review in connection with the annual audit. Note 2 — Method of Calculation Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation and population factors discussed in Notes 3 and 4 below. Note 3 — Population Factors A California governmental agency may use as its population factor either the annual percentage change of the jurisdiction's own population or the annual percentage change in population of the county where the jurisdiction is located. The factor adopted by the City for the year ended June 30, 2024, represents the annual percentage change in population for the City. Note 4 — Inflation Factors A California governmental agency may use as its inflation factor either the annual percentage change in the 4th quarter per capita personal income (which percentage is supplied by the California Department of Finance) or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City for the year ended June 30, 2024, represents the annual percentage change for per capita personal income. Note 5 — Other Adjustments A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another government agency or private entity. The City had no such adjustments for the year ended June 30, 2024. Air Quality Improvement Special Revenue Fund of the City of Santa Clarita Santa Clarita, California Financial Statements and Independent Auditors' Reports For the Year Ended June 30, 2024 THE PUN GROUP ACCOUNTANTS & ADVISORS Air Quality Improvement Special Revenue Fund of the City of Santa Clarita For the Year Ended June 30, 2024 Table of Contents Page Independent Auditors' Reports: Report on the Audit of the Financial Statements...............................................................................................1 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards...................................................................5 Report on Compliance for Air Quality Improvement Special Revenue Fund; and Report on Internal Control Over Compliance................................................................... 7 Financial Statements: BalanceSheet........................................................................................................................................................13 Statement of Revenue, Expenditures, and Change in Fund Balance....................................................................14 Notes to the Basic Financial Statements...............................................................................................................15 Supplementary Information: Schedule of Revenues, Expenditures, and Change in Fund Balance — Budget and Actual..................................21 Notes to the Budgetary Comparison Schedule.....................................................................................................23 This page intentionally left blank THE PUN GROUP ACCOUNTANTS & ADVISORS INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and the Members of the City Council of the City of Santa Clarita Santa Clarita, California Report on the Audit of the Financial Statements Opinion 200 E. Sandpointe Avenue, Suite 600 Santa Ana, California92707 www.pungroup.cpa (M We have audited the financial statements of the Air Quality Improvement Special Revenue Fund (the "Fund") of the City of Santa Clarita, California (the "City") as of and for the year ended June 30, 2024, and the related notes to the financial statements, as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of the Air Quality Improvement Special Revenue Fund of the City as of June 30, 2024, and the change in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America ("GAAS") and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ( "Government Auditing Standards'). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Emphasis of Matter As discussed in Note 1, the financial statements present only the Fund and do not purport to, and do not, present fairly the financial position of the City as of June 30, 2024, the changes in its financial position, or, where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor and the Members of the City Council of the City of Santa Clarita Santa Clarita, California Page 2 Auditors' Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • exercise professional judgment and maintain professional skepticism throughout the audit. • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. Supplementary Information Our audit was conducted for the purpose of forming opinion on the Fund's financial statements. The Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual and related note are presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual and related note are fairly stated, in all material respects, in relation to the financial statements as a whole. To the Honorable Mayor and the Members of the City Council of the City of Santa Clarita Santa Clarita, California Page 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 27, 2024, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. 2 /,-1/:) �Qd 4P44�k,, Santa Ana, California December 27, 2024 This page intentionally left blank THE PUN GROUP ACCOUNTANTS & ADVISORS 200 E. Sandpointe Avenue, Suite 600 Santa Ana, California92707 www.pungroup.cpa (M REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditors' Report To the Honorable Mayor and the Members of the City Council of the City of Santa Clarita Santa Clarita, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ( "Government Auditing Standards"), the financial statements of the Air Quality Improvement Special Revenue Fund (the "Fund"), of the City of Santa Clarita, California (the "City"), as of and for the year ended June 30, 2024, and the related notes to the financial statements, and have issued our report thereon dated December 27, 2024. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over the Air Quality Improvement Special Revenue Fund's financial reporting ("internal control") as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor and the Members of the City Council of the City of Santa Clarita Santa Clarita, California Page 2 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Fund's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Santa Ana, California December 27, 2024 THE PUN GROUP ACCOUNTANTS & ADVISORS 200 E. Sandpointe Avenue, Suite 600 Santa Ana, California92707 www.pungroup.cpa (M REPORT ON COMPLIANCE FOR AIR QUALITY IMPROVEMENT SPECIAL REVENUE FUND; AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE Independent Auditors' Report To the Honorable Mayor and the Members of the City Council of the City of Santa Clarita Santa Clarita, California Report on Compliance for the Air Quality Improvement Special Revenue Fund Opinion on Compliance We have audited the City of Santa Clarita, California's (the "City") compliance with the type of compliance requirements described in the Assembly Bill 2766, Chapter 1705 (44220 through 44247) ("AB 2766") for the year ended June 30, 2024. In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that are applicable to Air Quality Improvement Special Revenue Fund for the year ended June 30, 2024. Basis for Opinion We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America ("GAAS"); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ("Government Auditing Standards'); and AB 2766. Our responsibilities under those standards and AB 2766 are further described in the Auditors' Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our audit does not provide a legal determination of the City's compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City's AB 2766 programs. ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor and the Members of the City Council of the City of Santa Clarita Santa Clarita, California Page 2 Auditors' Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and AB 2766 will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City's compliance with the requirements of the government program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and the AB 2766, we: • exercise professional judgment and maintain professional skepticism throughout the audit. identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • obtain an understanding of the City's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with AB 2766, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charge scope and timing of the audit and any significant compliance that we identified during the audit. Report on Internal Control Over Compliance d with governance regarding, among other matters, the planned deficiencies and material weaknesses in internal control over A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a compliance requirement will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditors' Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. To the Honorable Mayor and the Members of the City Council of the City of Santa Clarita Santa Clarita, California Page 3 Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of AB 2766. Accordingly, this report is not suitable for any other purpose. Santa Ana, California December 27, 2024 This page intentionally left blank. 10 FINANCIAL STATEMENTS 11 This page intentionally left blank. 12 Air Quality Improvement Special Revenue Fund of the City of Santa Clarita Balance Sheet June 30, 2024 ASSETS Cash and investments Interest receivable Due from South Coast Air Quality Management District Total assets LIABILITIES FUND BALANCE Liabilities: Accounts payable Total liabilities Fund Balance: Restricted Total fund balance Total liabilities and fund balance $ 558,586 2,449 77,601 $ 638,636 $ 75 75 638,561 638,561 $ 638,636 See accompanying Notes to the Financial Statements. 13 Air Quality Improvement Special Revenue Fund of the City of Santa Clarita Statements of Revenues, Expenditures, and Change in Fund Balance For the Year Ended June 30, 2024 Revenues: Assembly Bill 2766 revenues $ 310,263 Investment Income 24,199 Total revenues 334,462 Expenditures: Current: Administrative 6,491 Air Quality Improvement Program 247,826 Total expenditures 254,317 Net change in fund balance 80,145 Fund Balance: Beginning of year 558,416 End of year $ 638,561 See accompanying Notes to the Financial Statements. 14 Air Quality Improvement Special Revenue Fund of the City of Santa Clarita Notes to the Financial Statements For the Year Ended June 30, 2024 Note 1— Financial Reporting Entity and Summary of Significant Accounting Policies A. Financial Reporting Entity The financial statements of the Air Quality Improvement Special Revenue Fund (the "Fund") of the City of Santa Clarita, California (the "City") are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The Governmental Accounting Standards Board ("GASB") is the acknowledged standard -setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States. The financial statements were prepared from only the accounts of the Fund. Accordingly, the financial statements do not purport to, and do not, present fairly the financial position of the City and changes in financial position thereof. B. Fund Accounting The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity with a self -balancing set of accounts. Monies received under Assembly Bill 2766 ("AB 2766") are recorded in the Fund. AB 2766 authorizes the South Coast Air Quality Management District (the "SCAQMD") to impose an annual vehicle registration fee and to distribute a portion of the collected revenues to all local jurisdictions within the South Coast Air Basin. These revenues are to be used solely to reduce air pollution from motor vehicles by implementing new programs and studies necessary for the implementation of the California Clean Air Act. C. Financial Statements Presentation, Basis of Accounting and Measurement Focus The fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Change in fund balance. Special Revenue Fund is accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheet. The statement of revenues, expenditures, and changes in fund balance present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. The primary revenue sources are revenues associated with AB 2766 and interest revenue, which are measurable and considered to be available if they are collected within 90 days of the end of the current fiscal period. The Fund recognizes assets of non -exchange transactions in the period when the underlying transaction occurs when all eligibility requirements are met. Non -exchange transactions occur when one government provides (or receives) value to (from) another party without receiving (or giving) equal or nearly equal value in return. The AB 2766 revenue is an example of a non -exchange transaction. Expenditures are recorded in the accounting period in which the related fund liability is incurred. 15 Air Quality Improvement Special Revenue Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2024 Note I — Organization and Summary of Significant Accounting Policies (Continued) D. Cash and Investments The Fund's cash balance was pooled with various other City funds for deposit and investment purposes. The City's Treasurer is responsible for the cash management of the Fund's cash balance, which pools available cash for investment purposes. The cash and cash equivalents are considered to be cash on hand, demand deposits, and short- term investments with original maturity of three months or less from the date of acquisition. Each City fund owns a share of pooled cash and investments, which are separately maintained, and interest income was apportioned based on its average month -end cash balances to the total of the pooled cash and investments. E. Fund Balance In the Fund's financial statements, fund balance is classified as follows: Restricted - Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation. Expenditures as they are incurred are applied against these restricted net resources. F. Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from these estimates and assumptions. Note 2 — Cash and Investments The Fund's share of the City's pooled cash and investments at June 30, 2024 is $558,586. Cash is deposited in the City's internal investment pool, which is reported at the amortized cost. The Fund does not own specifically identifiable securities in the City's pool. Interest income is allocated based on average cash balances. Investment policies and associated risk factors applicable to the Fund are those of the City and are included in the City's basic financial statements. Please refer to the City's Annual Comprehensive Financial Report for related disclosures for cash and investments. Note 3 — Due from South Coast Air Quality Management District The SCAQMD collects revenues from annual vehicle registration fees and allocates a percentage of the revenues collected to the City. As of June 30, 2024, the Fund's due from SCAQMD totaled $77,601. 16 Air Quality Improvement Special Revenue Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2024 Note 4 — Commitments and Contingencies The Fund receives monies from the SCAQMD that are subject to review and audit by the SCAQMD. Although such audits could result in disallowed expenditures under terms of the program's guidelines, it is believed that any repayments resulting from disallowances will not be material. Any identified amounts as a result of these audits would be required to be remitted back to the SCAQMD or having future remittances from the SCAQMD deducted accordingly. 17 This page intentionally left blank. 18 SUPPLEMENTARY INFORMATION 19 This page intentionally left blank. 20 Air Quality Improvement Special Revenue Fund of the City of Santa Clarita Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual For the Year Ended June 30, 2024 Revenues: Assembly Bill 2766 revenues Investment income (loss) Total revenues Expenditures: Current: Administrative Air Quality Improvement Program Total expenditures Net change in fund balance Fund Balance: Beginning of year End of year Budget Amounts Original Final Actual Amounts Variance with Final Budget Positive (Negative) $ 289,000 $ 289,000 $ 310,263 $ 21,263 7,603 7,603 24,199 16,596 296,603 296,603 334,462 37,859 8,916 8,916 6,491 2,425 338,300 575,958 247,826 328,132 347,216 584,874 254,317 330,557 $ (50,613) $ (288,271) 80,145 $ 368,416 558,416 $ 638,561 21 This page intentionally left blank. 22 Air Quality Improvement Fund Special Revenue Fund of the City of Santa Clarita Required Supplementary Information (Unaudited) Notes to the Budgetary Comparison Schedule For the Year Ended June 30, 2024 Budgetary Information Annual budgets are legally adopted on a basis consistent with generally accepted accounting principles in the United States of America for all governmental funds, except that encumbrances are shown in the year incurred for budgetary purposes. On or before the last day in January of each year, all operational units submit requests for appropriations to the City Manager for budget preparation purposes. The proposed budget is presented to the City Council for review. The City Council holds public hearings, and a final budget must be adopted no later than June 30. The appropriated budget is prepared by fund, function, and department at the category level. The City reports the following categories: personnel, operating and capital outlay. Additionally, the City separately prepares a capital improvement projects budget. The budgetary control for the Capital Improvement Program is at the program level. The City's Department Heads, with approval of the City Manager, may make transfers of appropriations within certain line -items within a program, but may not exceed the total appropriated amounts for each category. The City Manager may approve transfers that do not change the total appropriated amount within the fund. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the category level. The schedule does not present the legal level of budgetary control, which is at the category level. Refer to the City's Annual Comprehensive Financial Report for further information. Under encumbrance accounting, purchase orders, contracts, and other commitments for expenditures are recorded to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary accounting. Since encumbrances do not yet constitute expenditures or liabilities, encumbrances outstanding at year-end are classified as restricted fund balance. Unexpended appropriations lapse at year-end. 23 This page intentionally left blank. 24 Open Space Preservation District Special Revenue Fund of the City of Santa Clarita Santa Clarita, California Financial Statements and Independent Auditors' Report For the Year Ended June 30, 2024 THE PUN GROUP ACCOUNTANTS & ADVISORS Open Space Preservation District Special Revenue Fund of the City of Santa Clarita For the Year Ended June 30, 2024 Table of Contents Independent Auditors' Reports Page Report on the Audit of the Financial Statements..........................................................................................1 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards..............................................................5 Financial Statements: BalanceSheet.....................................................................................................................................................9 Statement of Revenues, Expenditures and Change in Fund Balance...............................................................10 Notes to the Financial Statements....................................................................................................................11 Supplementary Information: Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual .............................15 Notes to the Budgetary Comparison Schedule.................................................................................................16 THE PUN GROUP ACCOUNTANTS & ADVISORS 200 E. Sandpointe Avenue, Suite 600 Santa Ana, California92707 www.pungroup.cpa (M INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California Report on the Audit of the Financial Statements Opinion We have audited the financial statements of the Open Space Preservation District Special Revenue Fund (the "Fund") of the City of Santa Clarita, California (the "City") as of and for the year ended June 30, 2024, and the related notes to the financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of the Fund as of June 30, 2024, and the change in its financial position for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America ("GAAS") and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ("Government Auditing Standards"). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements present only the Fund and do not purport to, and do not, present fairly the financial position of the City as of June 30, 2024, the changes in its financial position, or, where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California Page 2 Auditors' Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • exercise professional judgment and maintain professional skepticism throughout the audit. • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. Supplementary Information Our audit was conducted for the purpose of forming opinion on the Fund's financial statements. The Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual is fairly stated, in all material respects, in relation to the financial statements as a whole. To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California Page 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 27, 2024 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. Santa Ana, California December 27, 2024 This page intentionally left blank. THE PUN GROUP ACCOUNTANTS & ADVISORS 200 E. Sandpointe Avenue, Suite 600 Santa Ana, California92707 www.pungroup.cpa (M REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditors' Report To the Honorable Mayor and the Members of the City Council of the City of Santa Clarita Santa Clarita, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ( "Government Auditing Standards'), the financial statements of the Open Space Preservation District Special Revenue Fund (the "Fund"), of the City of Santa Clarita, California (the "City"), as of and for the year ended June 30, 2024, and the related notes to the financial statements, and have issued our report thereon dated December 27, 2024. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over the Open Space Preservation District Special Revenue Fund's financial reporting ("internal control") as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor and the Members of the City Council of the City of Santa Clarita Santa Clarita, California Page 2 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Fund's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. izj 4��, Z,110 Santa Ana, California December 27, 2024 FINANCIAL STATEMENTS This page intentionally left blank. Cash and investments Receivables: Accounts Interest Taxes Total assets Open Space Preservation District Special Revenue Fund of the City of Santa Clarita Balance Sheet June 30, 2024 ASSETS LIABILITIES AND FUND BALANCE Liabilities: Accounts payable and accrued liabilities Total liabilities Fund Balance: Restricted for Open Space Preservation Total fund balance Total liabilities and fund balance $ 8,487,926 43,108 37,210 31,387 $ 8,599,631 $ 116,599 116,599 8,483,032 8,483,032 $ 8,599,631 See accompanying Notes to the Financial Statements. 9 Open Space Preservation District Special Revenue Fund of the City of Santa Clarita Statement of Revenues, Expenditures, and Change in Fund Balance For the Year Ended June 30, 2024 Revenues: Special assessments Charges for services Investment income Other revenue Total revenues Expenditures: Current: Open space preservation Total expenditures Excess of revenues over expenditures Other Financing (Uses): Transfers to the City Net change in fund balance Fund Balance: Beginning of year End of year $ 3,291,708 6,273 305,871 2,500 3,606,352 1,223,919 1,223,919 2,382,433 (818,246) 1,564,187 6,918,845 $ 8,483,032 See accompanying Notes to the Financial Statements. 10 Open Space Preservation District Special Revenue Fund of the City of Santa Clarita Notes to the Financial Statements For the Year Ended June 30, 2024 Note 1— Organization and Summary of Significant Accounting Policies A. Financial Reporting Entity On July 17, 2007, the City of Santa Clarita (the "City") established the Santa Clarita Open Space Preservation District (the "District") pursuant to the provisions of the Landscape and Lighting Act of 1972, being Part 2 of Division 15 of the California Street and Highway Code. The purpose of the District is to fund a portion of the City's open space, park and parkland program consisting of the acquisition, preservation, improvement, servicing, financing and maintenance of open -space land, parks and parkland, and appurtenant equipment and facilities, including the payment of debt service, of benefit to the property within the District. Facilities include, but are not limited to, open -space land, parks, parklands, the Santa Clarita River Watershed, trail systems and wildlife corridors. These are financed by special assessments levied on parcels within the City boundaries. The boundaries of the District are the same as the boundaries of the City. The City established the Open Space Preservation District Special Revenue Fund (the "Fund") to account for the activities of the District. The City has title of the constructed assets within the boundaries of the District. Any debt issued for activities of the District are issued in the name of the City. The financial statements were prepared from only the accounts of the Fund and, therefore, do not present the financial position or results of operations of the City and changes in financial position thereof for the year then ended in conformity with generally accepted accounting principles in the United States of America. B. Fund Accounting The Fund's statements are prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The Fund is presented as a Special Revenue Fund of the City. The Governmental Accounting Standards Board ("GASB") is the acknowledged standard -setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States. C. Financial Statements Presentation, Basis of Accounting and Measurement Focus Governmental fund financial statements include a balance sheet and a statement of revenues, expenditures, and changes in fund balance. The Fund is accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheet. The statement of revenues, expenditures, and changes in fund balance present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in the fund balance. The primary revenue sources are special assessments and interest revenue. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Revenues are considered available if they are collected within 90 days of the end of the current fiscal period, except for special assessments, which are within 60 days. Expenditures are recorded in the accounting period in which the related fund liability is incurred. D. Cash and Investments The Fund's cash balance was pooled with various other City funds for deposit and investment purposes. The City's treasurer is responsible for the cash management of the Fund's cash balance, which pools available cash for investment purposes. The cash and cash equivalents are considered to be cash on hand, demand deposits, and short- term investments with original maturity of three months or less from the date of acquisition. Each City fund owns a share of pooled cash and investments, which are separately maintained, and interest income was apportioned based on its average month -end cash balances to the total of the pooled cash and investments. 11 Open Space Preservation District Special Revenue Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2024 Note 1— Organization and Summary of Significant Accounting Policies (Continued) E. Special Assessments Special assessment taxes are attached as enforceable liens on real property on July 1, the beginning of the fiscal year, and are due in two installments on November 1 and February 1; however, no penalties or interest are assessed until December 10 and April 10, respectively. These taxes are determined annually based on property values, subject to limits based on Proposition 13, as of January 1 of the levy year, which is prior to the end of the previous fiscal year. The County of Los Angeles bills and collects these taxes for the District and are remitted on a monthly basis. F. Fund Balance In the Fund's financial statements, fund balance is classified as follows: Restricted - Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation. Expenditures as they are incurred are applied against these restricted net resources. G. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from these estimates and assumptions. Note 2 — Cash and Investments The Fund's share of the City's pooled cash and investments at June 30, 2024 was in the amount of $8,487,925. Cash is deposited in the City's internal investment pool, which is reported at amortized cost. The Fund does not own specifically identifiable securities in the City's pool. Interest income is allocated based on average cash balances. Investment policies and associated risk factors applicable to the Fund are those of the City and are included in the City's basic financial statements. Please refer to the City's Annual Comprehensive Financial Report for related disclosures for cash and investments. Note 3 — Transfers to Other Funds of the City of Santa Clarita The Fund made transfers to the City's Public Financing Authority Debt Service Fund in the amount of $818,246 for current year debt service payments for the Lease Revenue Bond Series 2016B. As of June 30, 2024, $11,090,000 was outstanding. Revenues from the Fund are pledged for repayment of the bonds, but the City is not obligated to require additional amounts from the Fund in event the revenues of the fund are insufficient for bond repayment. Additional information regarding the Lease Revenue Bond Series 2016B is presented in the City's Annual Comprehensive Financial Report. 12 SUPPLEMENTARY INFORMATION 13 This page intentionally left blank. 14 Open Space Preservation District Special Revenue Fund of the City of Santa Clarita Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual For the Year Ended June 30, 2024 Budget Amounts Original Final Actual Amounts Variance with Final Budget Positive (Negative) Revenues: Special assessments $ 3,267,232 $ 3,267,232 $ 3,291,708 $ 24,476 Charges for services 87,000 87,000 6,273 (80,727) Investment income 201,667 201,667 305,871 104,204 Other revenue - - 2,500 2,500 Total revenues 3,555,899 3,555,899 3,606,352 50,453 Expenditures: Open space preservation: Operating: Personnel 516,306 524,467 481,855 42,612 Operations and maintenance 521,701 800,720 742,064 58,656 Capital outlay - 263,695 - 263,695 Total expenditures 1,038,007 1,588,882 1,223,919 364,963 Excess of revenues over expenditures 2,517,892 1,967,017 2,382,433 (314,510) Other Financing Uses: Transfers to the City (825,006) (825,006) (818,246) (6,760) Net change in fund balance $ 1,692,886 $ 1,142,011 1,564,187 $ (321,270) Fund Balance: Beginning of year 6,918,845 End of year $ 8,483,032 15 Open Space Preservation District Fund of the City of Santa Clarita Required Supplementary Information (Unaudited) Notes to the Budgetary Comparison Schedule For the Year Ended June 30, 2024 Budgetary Information Annual budgets are legally adopted on a basis consistent with generally accepted accounting principles in the United States of America for all governmental funds, except that encumbrances are shown in the year incurred for budgetary purposes. On or before the last day in January of each year, all operational units submit requests for appropriations to the City Manager for budget preparation purposes. The proposed budget is presented to the City Council for review. The City Council holds public hearings, and a final budget must be adopted no later than June 30. The appropriated budget is prepared by fund, function, and department at the category level. The City reports the following categories: personnel, operating and capital outlay. Additionally, the City separately prepares a capital improvement projects budget. The budgetary control for the Capital Improvement Program is at the program level. The City's Department Heads, with approval of the City Manager, may make transfers of appropriations within certain line -items within a program, but may not exceed the total appropriated amounts for each category. The City Manager may approve transfers that do not change the total appropriated amount within the fund. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the category level. The schedule does not present the legal level of budgetary control, which is at the category level. Refer to the City's Annual Comprehensive Financial Report for further information. Under encumbrance accounting, purchase orders, contracts, and other commitments for expenditures are recorded to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary accounting. Since encumbrances do not yet constitute expenditures or liabilities, encumbrances outstanding at year-end are classified as restricted fund balance. Unexpended appropriations lapse at year-end. 16 City of Santa Clarita Santa Clarita, California Single Audit and Independent Auditors' Reports For the Year Ended June 30, 2024 THE � PUN GROUP ACCOUNTANTS & ADVISORS City of Santa Clarita Single Audit and Independent Auditors' Reports For the Year Ended June 30, 2024 Table of Contents Page Independent Auditors' Reports: Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards...................................................................... 1 Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance....................................................... 3 Schedule of Expenditures of Federal Awards............................................................................................................... 7 Notes to the Schedule of Expenditures of Federal Awards........................................................................................... 8 Schedule of Findings and Questioned Costs................................................................................................................10 This page intentionally left blank THE PUN GROUP ACCOUNTANTS & ADVISORS 200 E. Sandpointe Avenue, Suite 600 Santa Ana, California92707 www.pungroup.cpa (M REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTA VDITING STANDARDS Independent Auditors' Report To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ("Government Auditing Standards"), the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Santa Clarita, California (the "City"), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated December 27, 2024. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting ("internal control") as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California Page 2 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Santa Ana, California December 27, 2024 THE PUN GROUP ACCOUNTANTS & ADVISORS 200 E. Sandpointe Avenue, Suite 600 Santa Ana, California92707 www.pungroup.cpa REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE Independent Auditors' Report To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the City of Santa Clarita, California's (the "City") compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended June 30, 2024. The City's major federal programs are identified in the summary of the auditors' results section of the accompanying Schedule of Findings and Questioned Costs. In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2024. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America ("GAAS"); the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States ("Government Auditing Standards"), and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditors' Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City's compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City's federal programs. ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California Page 2 Auditors' Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City's compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we: • exercise professional judgment and maintain professional skepticism throughout the audit. identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • obtain an understanding of the City's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control Over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditors' Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California Page 3 Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City's basic financial statements. We issued our report thereon dated December 27, 2024, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the Schedule of Expenditure of Federal Awards is fairly stated in all material respects in relation to the basic financial statements as a whole. _/&_ Z d 4 1,47P Santa Ana, California December 27, 2024 Thispage intentionally left blank City of Santa Clarita Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2024 Assistance Federal Grantor/Pass-Through Grantor Listing Program Title Number U.S. Department of Housing and Urban Development CDBG - Entitlement/Special Purpose Grants Cluster Direct Programs: Community Development Block Grants/Entitlement Grants 14.218 Community Development Block Grants/Entitlement Grants 14.218 Community Development Block Grants/Entitlement Grants 14.218 Community Development Block Grants/Entitlement Grants 14.218 COVID-19 - Community Development Block Grants/Entitlement Grants - CARES Act 14.218 Total CDBG - Entitlement/Special Purpose Grants Cluster Total U.S. Department of Housing and Urban Development U.S. Department of Justice Direct Program: Edward Byrne Memorial Justice Assistance Grant Program 16.738 Edward Byrne Memorial Justice Assistance Grant Program 16.738 Total Edward Byrne Memorial Justice Assistance Grant Program Total U.S. Department of Justice U.S. Department of Transportation Pass -through the State of California Department of Transportation: Highway Planning and Construction (Federal -Aid Highway Program) 20.205 Highway Planning and Construction (Federal -Aid Highway Program) 20.205 Highway Planning and Construction (Federal -Aid Highway Program) 20.205 Highway Planning and Construction (Federal -Aid Highway Program) 20.205 Highway Planning and Construction (Federal -Aid Highway Program) 20.205 Total Highway Planning and Construction (Federal -Aid Highway Program) Federal Transit Cluster Direct Programs: Federal Transit - Formula Grants (Urbanized Area Formula Program) 20.507 Federal Transit - Formula Grants (Urbanized Area Formula Program) 20.507 Federal Transit - Formula Grants (Urbanized Area Formula Program) 20.507 COVID-19 - Federal Transit - Formula Grants (Urbanized Area Formula Program) 20.507 Federal Transit - Formula Grants (Urbanized Area Formula Program) 20.507 COVID-19 - Federal Transit - Formula Grants (Urbanized Area Formula Program) 20.507 Federal Transit - Formula Grants (Urbanized Area Formula Program) 20.507 Federal Transit - Formula Grants (Urbanized Area Formula Program) 20.507 Total Federal Transit Cluster Total U.S. Department of Transportation U.S. Department of the Treasury Direct Programs: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 Total U.S. Department of the Treasury Total Expenditures of Federal Awards Agency or Pass -Through Number B-19-MC-06-0576 B-20-MC-06-0576 B-21-MC-06-0576 B-22-MC-06-0576 B-20-M W-06-0576 15PB JA-22-GG-02609-JAGX 15PB JA-23-GG-03131-JAGX HSIPL-5450(94) STPL-5450 (102) BHLS-5450(101) DEML22-5450(104) BPMPL-5450(095) CA-90-Y276-02 CA-2017-138-00 CA-2019-125-00 CA-2021-138-00 CA-2021-193-00 CA-2022-125-00 CA-2022-167-00 CA-2023-074-00 Federal Expenditures Expenditures to Subrecipients $ 307,567 $ 307,567 507,154 341,198 574,121 - 29,773 - 173,969 167,420 1,592,584 816,185 1,592,584 816,185 6,903 23,665 30,568 30,568 126,087 2,129,721 52,966 89,835 342,803 2,741,412 19,038 40,400 143,492 2,747,564 2,630,393 9,806,928 62,499 272,872 15,723,186 18,464,598 1505-0271 6,309,485 6,309,485 $ 26,397,235 $ 816,185 7 City of Santa Clarita Notes to the Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2024 Note 1— Reporting Entity The financial reporting entity, as defined by the Governmental Accounting Standards Board ("GASB") Codification, consists of the primary government, which is the City of Santa Clarita, California (the "City"), organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the City's financial statements to be misleading or incomplete. The City Council acts as the governing body and is able to impose its will on the following organization, establishing financial accountability: • The Santa Clarita Public Financing Authority • The Santa Clarita Public Television Authority Note 2 — Summary of Significant Accounting Policies Basis of Accounting Funds received under the various grant programs have been recorded within the special revenue funds and enterprise fund of the City. The City utilizes the modified accrual basis of accounting for the special revenue funds and the accrual basis of accounting for the enterprise funds. The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations ("CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the "Uniform Guidance"). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, the preparation of City's basic financial statements. Schedule of Expenditures of Federal Awards The accompanying Schedule presents the activity of all federal financial assistance programs of the City. Federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through the State of California Department of Transportation, are included in the Schedule. The Schedule was prepared from only the accounts of various grant programs and, therefore, does not present the financial position or results of operations of the City. Indirect Cost Rate The City did not elect to use the 10% de minimis cost rate. City of Santa Clarita Notes to the Schedule of Expenditures of Federal Awards (Continued) For the Year Ended June 30, 2024 Note 3 — Subrecipients During the year ended June 30, 2024, the City has the following subrecipients: Assistance Amount Provided Listing Number Program Name / Subrecipient Name to Subrecipients 14.218 Community Development Block Grants / Entitlement Grants: Handyworker / Santa Clarita Valley Senior Center $ 395,690 Community Access / Santa Clarita Valley Senior Center 49,000 Rehab / Santa Clarita Valley Senior Center 5,000 Project Special Children of the Valley / Carousel Ranch Inc. 10,710 Ready to Work/Carousel Ranch Inc. 10,445 Comprehensive Mental Health / Single Mothers Outreach 29,984 Household Support / Family Promise of Santa Clarita 35,000 Case Management / Fostering Youth Independence 35,825 Homeless Intake and Assessment / Bridge To Home 52,323 Fair Housing / Housing Rights Center 24,788 COVID-19 - Community Development Block Grants / Entitlement Grants - CARES Act: Childcare Scholarships / Santa Clarita Valley YMCA 36,758 Household Support / Family Promise of Santa Clarita 35,000 Rent & Utilities / The Salvation Army 30,705 Rent & Utilities - Disabled / Avenues 20,169 COVID-19 Childcare Scholarship / Boys & Girls Club 26,500 Study Place Program/ Fostering Youth Independence 18,288 $ 816,185 9 City of Santa Clarita Schedule of Findings and Questioned Costs For the Year Ended June 30, 2024 Section I — Summary of Auditors' Results Financial Statements Types of report the auditors issued on whether the financial statements audited were prepared in accordance with GAAP: Unmodified Internal control over financial reporting: • Material weakness(es) identified? No • Significant deficiency(ies) identified? None Reported Noncompliance material to financial statements noted? No Federal Awards Internal control over major federal programs: • Material weakness(es) identified? No • Significant deficiency(ies) identified? None Reported Type of auditors' report issued on compliance for major federal programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? No Identification of major federal programs: Assistance Listing Federal Numbers Major Federal Program or Cluster Expenditures 20.205 Highway Planning and Construction $ 2,741,412 21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 6,309,485 Total Expenditures of All Major Federal Programs $ 9,050,897 Total Expenditures of Federal Awards $ 26,397,235 Percent of Total Expenditures of Federal Awards 34.29% Dollar threshold used to distinguish between type A and type B programs: $791,917 Auditee qualified as a low -risk auditee in accordance with 2 CFR 200.520? Yes 10 City of Santa Clarita Schedule of Findings and Questioned Costs (Continued) For the Year Ended June 30, 2024 Section II — Financial Statement Findings A. Current Year Findings — Financial Statement No current year findings were reported. B. Prior Year Findings — Financial Statement No prior year findings were reported. m City of Santa Clarita Schedule of Findings and Questioned Costs (Continued) For the Year Ended June 30, 2024 Section III — Federal Award Findings and Questioned Costs A. Current Year Findings and Questioned Costs —Major Federal Award Program Audit No current year findings were reported. B. Prior Year Findings and Questioned Costs — Major Federal Award Program Audit No prior year findings were reported. 12 Transit Enterprise Fund of the City of Santa Clarita Santa Clarita, California Independent Auditors' Reports and Financial Statements For the Year Ended June 30, 2024 THE PUN GROUP ACCOUNTANTS & ADVISORS Transit Enterprise Fund of the City of Santa Clarita For the Year Ended June 30, 2024 Table of Contents Page Independent Auditors' Reports: Report on the Audit of the Financial Statements............................................................................................... 1 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards...................................................................5 Financial Statements: Statementof Net Position...................................................................................................................................... 9 Statement of Revenues, Expenses and Changes in Fund Net Position................................................................ 10 Statementof Cash Flows..................................................................................................................................... 11 Notesto the Financial Statements........................................................................................................................13 Required Supplementary Information (Unaudited): Schedule of Proportionate Share of the Net Pension Liability and Related Ratios .............................................. 30 Schedule of Contributions — Pensions.................................................................................................................. 32 Schedule of Proportionate Share of the Net Other Postemployment Benefits ("OPEB") Liability and Related Ratios........................................................................................... 34 Schedule of Contributions — Other Postemployment Benefits............................................................................. 36 11 This page intentionally left blank. THE PUN GROUP ACCOUNTANTS & ADVISORS 200 E. Sandpointe Avenue, Suite 600 Santa Ana, California92707 www.pungroup.cpa (M INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California Report on the Audit of the Financial Statements Opinion We have audited the financial statements of the Transit Enterprise Fund (the "Transit Fund") of the City of Santa Clarita, California (the "City"), as of and for the year ended June 30, 2024, and the related notes to the financial statements, as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of the Transit Fund as of June 30, 2024, and the changes in its financial position for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America ("GAAS") and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ("Government Auditing Standards"). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Emphasis of Matter As discussed in Note 1, the financial statements present only the Transit Fund and do not purport to, and do not, present fairly the financial position of the City as of June 30, 2024, the changes in its financial position, or where applicable, its cash flows for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California Page 2 Auditors' Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • exercise professional judgment and maintain professional skepticism throughout the audit. • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Schedule of Proportionate Share of the Net Pension Liability, the Schedule of Contributions — Pensions, the Schedule of Proportionate Share of the Net Other Postemployment Benefits ("OPEB") Liability, and the Schedule of Contributions — Other Postemployment Benefits be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the Required Supplementary Information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the financial statements, and other knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Management has omitted the management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California Page 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 27, 2024, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. Santa Ana, California December 27, 2024 This page intentionally left blank. THE PUN GROUP ACCOUNTANTS & ADVISORS 200 E. Sandpointe Avenue, Suite 600 Santa Ana, California92707 www.pungroup.cpa (M REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditors' Report To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ("Government Auditing Standards"), the financial statements of the Transit Enterprise Fund (the "Transit Fund"), of the City of Santa Clarita, California (the "City"), as of and for the year ended June 30, 2024, and the related notes to the financial statements, and have issued our report thereon dated December 27, 2024. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over the Transit Fund's financial reporting ("internal control") as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. ORANGE COUNTY • SAN DIEGO • SACRAMENTO • WALNUT CREEK • LAS VEGAS • PHOENIX 000 To the Honorable Mayor and the Members of City Council of the City of Santa Clarita Santa Clarita, California Page 2 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Transit Fund's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Santa Ana, California December 27, 2024 FINANCIAL STATEMENTS This page intentionally left blank. Transit Enterprise Fund of the City of Santa Clarita Statement of Net Position June 30, 2024 ASSETS: Current assets: Pooled cash and investments Accounts receivable Interest receivable Due from other governments Prepaid items Total current assets Noncurrent assets: Nondepreciable assets Depreciable assets, net Total capital assets Net other postemployment benefits asset Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES: Pension related Other postemployment benefits related Total deferred outflows of resources LIABILITIES: Current liabilities: Accounts payable Accrued payroll Compensated absences - due within one year Total current liabilities Noncurrent liabilities: Compensated absences - due in more than one year Net pension liability Total noncurrent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES: Pension related Other postemployment benefits related Total deferred inflows of resources NET POSITION: Investment in capital assets Unrestricted Total net position $ 21,218,288 12,666 94,135 2,655,286 14,859 23,995,234 15,320,970 69,213,375 84,534,345 183,117 84,717,462 108,712,696 1,069,716 122,407 1,192,123 4,311,852 29,876 85,710 4,427,438 32,609 1,482,595 1,515,204 5,942,642 49,514 449,575 499,089 84,534,345 18,928,743 $ 103,463,088 See accompanying Notes to the Financial Statements. 9 Transit Enterprise Fund of the City of Santa Clarita Statement of Revenues, Expenses and Change in Fund Net Position For the Year Ended June 30, 2024 OPERATING REVENUES: Metrolink and EZ pass revenues $ 48,302 Fixed -route passenger fares 1,408,993 Dial -A -Ride passenger fares 86,398 County of Los Angeles operating assistance 1,955,172 Specialized transit services 2,005,502 Miscellaneous revenues 656,749 Total operating revenues 6,161,116 OPERATING EXPENSES: Salaries and benefits 1,470,742 Administrative services 2,053,750 Contract transportation services 20,626,923 ETA funded non -capitalized projects 417,130 Insurance 171,131 Supplies, utilities and other 2,713,888 Depreciation 6,733,225 Total operating expenses 34,186,789 OPERATING (LOSS) (28,025,673) NONOPERATING REVENUES: Proposition A Discretionary 5,451,954 Proposition A Specialized Transportation 1,008,737 Proposition C Expansion 221,403 Proposition C BSIP 57,469 Proposition C Transit Mitigation 30,078 Proposition C Security Allocation 371,692 Measure R Bus Operations 3,583,881 Measure M Bus Operations 3,580,851 SB1 State Transportation Assistance 854,017 CARES Act 12,554,492 Investment income 418,986 Loss on disposal of capital assets (420,531) Total nonoperating revenues 27,713,029 INCOME BEFORE CONTRIBUTIONS AND TRANSFERS (312,644) CAPITAL CONTRIBUTIONS: Federal Transit Administration capital grants 3,168,693 Proposition C MOSIP 69,280 Measure M Regional 271,052 Capital contribution (7,503,190) Total contributions (3,994,165) TRANSFERS: Transfers out to the City (254,834) Total transfers (254,834) Change in net position (4,561,643) NET POSITION: Beginning of year 108,024,731 End of year $ 103,463,088 See accompanying Notes to the Financial Statements. 10 Transit Enterprise Fund of the City of Santa Clarita Statement of Cash Flows For the Year Ended June 30, 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers and users $ 5,502,743 Cash payments to suppliers for goods and services (25,110,177) Cash payments to employees (1,422,493) Cash received from other sources 656,749 Net cash (used in) operating activities (20,373,178) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers out to the City (254,834) Federal and state funding received 29,673,287 Net cash provided by noncapital financing activities 29,418,453 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Capital contributions received 3,509,025 Acquisition of capital assets (2,518,600) Proceeds from sale of capital assets 20,000 Net cash provided by capital and related financing activities 1,010,425 CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 366,131 Net cash provided by investing activities 366,131 Net change in cash and cash equivalents 10,421,831 CASH AND CASH EQUIVALENTS: Beginning of year 10,796,457 End of year $ 21,218,288 NONCASH ITEM FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Capital contribution made $ (7,503,190) RECONCILIATION OF OPERATING (LOSS) TO NET CASH (USED IN) OPERATING ACTIVITIES: Operating (loss) $ (28,025,673) Adjustments to reconcile operating (loss) to net cash (used in) operating activities: Depreciation 6,733,225 Changes in operating assets, deferred outflows of resources, liabilities, and deferred inflows of resources: (Increase) decrease in accounts receivable (1,624) (Increase) decrease in prepaid items 6,827 Increase (decrease) in accounts payable 865,818 Increase (decrease) in accrued payroll 1,915 Increase (decrease) in compensated absences (18,337) Increase (decrease) in pension and pension related deferred outflows and inflows of resources 115,870 Increase (decrease) in OPEB and OPEB related deferred outflows and inflows of resources (51,199) Net cash (used in) operating activities $ (20,373,178) See accompanying Notes to the Financial Statements. 11 This page intentionally left blank. 12 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements For the Year Ended June 30, 2024 Note 1— Summary of Significant Accounting Policies A. Description of the Financial Reporting Entity The financial statements of the Transit Enterprise Fund (the "Transit Fund") of the City of Santa Clarita, California (the "City") are intended to present the financial position and results of the bus line services operation. The financial statements of the Transit Fund are included as a business -type (enterprise fund) activity in the basic financial statements of the City. The financial statements were prepared from only the accounts of the Fund. Accordingly, the financial statements do not purport to, and do not, present fairly the financial position of the City and changes in financial position thereof for the year then ended in conformity with generally accepted accounting principles in the United States of America. B. Measurement Focus, Basis of Accounting and Financial Statements Presentation The accounting policies of the Fund are in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") applicable to proprietary activities of governmental units. The Governmental Accounting Standards Board ("GASB") is the accepted standard -setting body for establishing accounting and financial reporting principles. The financial statements of the Transit Fund include a Statement of Net Position, a Statement of Revenues, Expenses, and Changes in Fund Net Position, and a Statement of Cash Flows. The financial statements are prepared using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the statement of net position. The statement of revenues, expenses, and changes in fund net position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned, while expenses are recorded in the period in which the liability is incurred. Operating revenues and expenses result from the operating and maintenance of the local public transit services. The operating revenues consist of only charges to customers for the service provided (bus fares). Operating expenses include the costs of providing these services, administrative expenses and depreciation expense. All revenues and expenses not meeting these definitions, and which are not capital in nature are reported as non -operating revenues and expenses. The Transit Fund recognizes assets of non -exchange transactions in the period when the underlying transaction occurs, when an enforceable legal claim has arisen, or when all eligibility requirements are met. Non -exchange transactions occur when the Fund receives value from another party without giving equal or nearly equal value in return. Various intergovernmental revenues and most donations are examples of non -exchange transactions. Under the terms of grant agreements, the Fund has an enforceable claim with other governmental agencies when specific program expenses are incurred. The Fund has an enforceable claim to local funding allocations when the allocations are determined by the other governmental agencies on an annual basis. C. Cash and Cash Equivalents The Transit Fund's cash balance was pooled with various other City funds for deposit and investment purposes. The City's treasury is responsible for the cash management of the Transit Fund's cash balance. Cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition, and the Transit Fund's participation in the City investment pool are considered to be cash and cash equivalents. Each City fund owns a share of pooled cash and investments and interest income was apportioned based on its average month -end cash balances in proportion to the total of the pooled cash and investments. 13 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2024 Note 1— Summary of Significant Accounting Policies (Continued) D. Grants Grant revenues and receivables are recorded when earned on grants that have been approved and funded by the grantor, and when eligibility requirements for the grant have been met. Grant sources include Federal Transit Administration, State of California, and Los Angeles Metropolitan Transportation Authority. E. Administrative Services Service costs include contractual, professional, and legal services. F. Prepaids Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in the financial statements. G. Capital Assets Capital assets include land, site improvements, buildings and improvements, and vehicles and equipment. Capital assets are defined by the City as assets with an initial cost of more than $10,000 ($25,000 for site improvements and building improvements) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Capital assets are depreciated using the straight-line method over the following estimated useful lives: Assets Years Site improvements 10 to 50 Building and improvements 5 to 50 Equipment 5 to 25 H. Deferred Outflows and Inflows of Resources The statement of financial position reports separate sections for deferred outflows of resources and deferred inflows of resources, when applicable. Deferred Outflows of Resources represent a consumption of net assets that applies to future periods. The Transit Fund reports pension contribution after measurement date, deferred loss related to pension and other postemployment benefits in this category. Deferred Inflows ofResources represent an acquisition of net assets that applies to future periods. The Transit Fund reports deferred gain related to pension and other postemployment benefits in this category. 14 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2024 Note 1— Summary of Significant Accounting Policies (Continued) L Compensated Absences It is the City's policy to permit employees to accumulate earned but unused vacation and comp time (compensated absences). This accumulation is recorded as an expense and liability of the Transit Fund in the fiscal year earned. The outstanding balance as of June 30, 2024 was $118,319, of which, $85,710 was considered due within one year, and $32,609 was considered due in more than one year. J. Pensions The Transit Fund reports a proportion of the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, of the collective net pension liability of the City of Santa Clarita. All amounts and disclosures are presented on a cost -sharing perspective where the Transit Fund is a participant in the City's plan. For purposes of measuring the net pension liability, deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the California Public Employees Retirement System (CAPERS) plan and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by CAPERS. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans' fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. The following timeframes are used for pension reporting: Valuation Date: June 30, 2022 Measurement Date: June 30, 2023 Measurement Period: July 1, 2022 to June 30, 2023 Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period. K. Other Post -Employment Benefits ("OPEB') For purposes of measuring the net OPEB asset, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City's plan (OPEB Plan) and additions to/deductions from the OPEB Plan's fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. 15 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2024 Note 1— Summary of Significant Accounting Policies (Continued) K. Other Post -Employment Benefits ("OPEB') (Continued) Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used: Valuation Date: June 30, 2022 Measurement Date: June 30, 2024 Measurement Period: July 1, 2023 to June 30, 2024 Gains and losses related to changes in total OPEB liability are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The gain and loss are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period. L. Net position Net position represents the difference between assets and deferred outflows, and liabilities and deferred inflows, and is classified into two categories: Investment in Capital Assets — This component of net position consists of capital assets, net of accumulated depreciation. Unrestricted — This amount represents the residual of amounts not classified in investment in capital assets and represents the net position available for the Transit Fund. When an expense is incurred for purposes for which both restricted and unrestricted resources are available, the Transit Fund's policy is to apply restricted resources first. M. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts in the financial statements and accompanying notes. Actual results could differ from these estimates. 16 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2024 Note 2 — Cash and Cash Equivalent The Transit Fund's share of the City's cash and investment at June 30, 2024 was in the amount of $21,218,288. Cash is deposited in the City's internal investment pool, which is reported at amortized cost. The Transit Fund does not own specifically identifiable securities in the City's pool. Interest income is allocated based on average cash balances. Investment policies and associated risk factors applicable to the Transit Fund are those of the City and are included in the City's basic financial statements. Please refer to the City's Annual Comprehensive Financial Report for related disclosures for cash and investments. Note 3 — Due From Other Governments Due from other governments consists of the following at June 30, 2024: Agency Amount Los Angeles County $ 1,210,185 Federal Government 344,758 Federal Transit Administrator 181,168 Other Agencies 919,175 Total $ 2,655,286 Due from other governments relate to various program support revenues received from other governments in support of transit operations and programs. Note 4 — Capital Assets Changes in capital assets of the Fund at June 30, 2024, consisted of the following: Balance hilv 1 2023 Arlditinnc Capital assets, not being depreciated: Land and right of way $ 15,087,880 $ - Construction inprogress 15,933,925 222,321 Total capital assets, not being depreciated 31,021,805 222,321 Capital assets, being depreciated: Site improvement 12,941,276 - Building improvements 46,682,437 - Equipment 69,093,703 2,296,279 Total capital assets, being depreciated 128,717,416 2,296,279 Less accumulated depreciation for: Site improvement (6,672,916) (880,295) Building improvements (17,429,823) (1,024,103) Equipment (38,943,791) (4,828,827) Total accumulated depreciation (63,046,530) (6,733,225) Total capital assets, being depreciated, net 65,670,886 (4,436,946) Total capital assets, net $ 96,692,691 $ (4,214,625) Deletions/ Balance Contributions Reclassification June 30, 2024 $ - $ - $ 15,087,880 (7,503,190) (8,419,966) 233,090 (7,503,190) (8,419,966) 15,320,970 8,419,966 21,361,242 (6,800) - 46,675,637 (621,801) - 70,768,181 (628,601) 8,419,966 138,805,060 179,072 - (7,374,139) (7,277) (18,461,203) 16,275 (43,756,343) 188,070 (69,591,685) (440,531) 8,419,966 69,213,375 $ (7,943,721) $ - $ 84,534,345 17 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2024 Note 5 — Pension Plan A. Generullnformation about the Pension Plan Plan Description All qualified permanent, probationary, and some PTS employees are eligible to participate in the City's Miscellaneous Pension Plan, an agent multiple -employer defined benefit pension plan administered by the California Public Employees' Retirement System (CAPERS), which acts as a common investment and administrative agent for its participating member employers. The employees are participants in the Miscellaneous Plan of the City. For financial reporting purposes, the Transit Fund reports a proportionate share of the City's collective net pension liability, pension expense, and deferred inflows and outflows of resources. Accordingly, the disclosures and required supplementary information have been reported for the Transit Fund as a cost sharing participant. Benefit provisions under the Plan are established by State statute and City resolution. CAPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CAPERS website. The Plan's provisions and benefits in effect at June 30, 2024, are summarized as follows: Miscellaneous Tier 1 Tier 2 Tier 3 Benefit formula 2.7% @ 55 2% @ 60 2% @ 62 Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age 50-55 50-60 52-62 Required employee contribution rates 8.000% 7.000% 7.250% Required employer contribution during measurement perio 9.820% 9.820% 9.820% Applies to: Employees hired Employees hired between Employees hired before April 9, 2011 April 9, 2011 and January 1, 2013 or December 31, 2012 or later those hired January 1, 2013, or later , who have been a classic Ca1PERS member with a public agency or in a classic reciprocal Plan within the last 6 months * * Those hired as part seasonal (PTS) who later convert to regular full time will qualify for Tier 1, 2, or 3 depending on their conversion date and status when hired. Contributions Section 20814(c) of the California Public Employees' Retirement law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CAPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year. The employer is required to contribute the difference between the actuarially determined rate and the contribution rates of employees. The expense associated with contributions for the Transit Fund employees is charged to payroll at the required rates previously noted. 18 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2024 Note 5 — Pension Plan (Continued) A. General Information about the Pension Plan (Continued) Contributions (Continued) Contributions made to pension plan by the Transit Fund for the year ended June 30, 2024 were $339,504. B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2022 valuation for the City's Miscellaneous Plan was rolled forward to determine the June 30, 2023 total pension liability, based on the following actuarial methods and assumptions: Actuarial Cost Method Actuarial Assumptions: Discount Rates Inflation Salary Increases Mortality Rate Table Post Retirement Benefit Increase Entry Age Normal 6.90% 2.300% Varies by Entry Age and Service Derived using CaIPERS'S Membership Data for all Funds. The lesser of contract COLA or 2.30% until Purchasing Power 1 The mortality table used was developed based on CaIPERS-specific data. The probabilities of mortality are based on the 2021 CAPERS Experience Study for the period from 2001 to 2019. Pre- retirement and Post -retirement mortality rates include 15 years of projected mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CAPERS website. Change ofAssumption There were no assumption changes in 2023. Long -Term Expected Rate ofReturn The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, Ca1PERS took into account both short-term and long-term market return expectations. Using historical returns of all of the funds' asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 basis points. 19 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2024 Note 5 — Pension Plan (Continued) B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) Long -Term Expected Rate ofReturn (Continued) The expected real rates of return by asset class are as follows: Discount Rate, Continued Asset Class] Assumed Asset Allocation Real Return° z Global Equity Cap -weighted 30.00% 4.54% Global Equity Non -cap -weighted 12.00% 3.84% Private Equity 13.00% 7.28% Private Debt 5.00% 3.57% Emerging Market Sovereign Bonds 5.00% 2.48% High Yield Bonds 5.00% 2.27% Investment Grade Corporates 10.00% 1.56% Mortgage -backed Securities 5.00% 0.50% Treasuries 5.00% 0.27% Real Assets 15.00% 3.21% Leverage -5.00% -0.59% 100.00% nicrn7jnt Rnto The discount rate used to measure the total pension liability was 6.90 percent for the Plan. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current contribution rate and that the district's contributions will be made at rates equal to the difference between actuarially determined contributions rates and the employee rate. Based on those assumptions, each pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Proportionate Share of Net Pension Liability and Pension Expense The following table shows the Transit Fund's proportionate share of the risk pool collective net pension liability over the measurement period: Balance at June 30, 2022 (Valuation Date) Balance at June 30, 2023 (Measurement Date) Net changes during 2022-23 Increase (Decrease) Total Pension Plan Fiduciary Net Net Pension Liability Position Liability/(Asset) (a) (b) (c) _ (a) - (b) $ 9,326,982 $ 7,963,823 $ 1,363,159 10,015,303 8,532,708 1,482,595 $ 688,321 $ 568,885 $ 119,436 20 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2024 Note 5 — Pension Plan (Continued) B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) Proportionate Share of Net Pension Liability and Pension Expense (Continued) The Transit Fund's proportion of the net pension liability (asset) was based on actual contributions paid by the Transit Fund in relation to the total City's contribution paid for the Miscellaneous Plan, as determined by the City. The Transit Fund's proportion of the net pension liability was as follows: Measurement Date June 30, 2022 June 30, 2023 3.51435% 3.51435% Change - Increase (Decrease) 0.00000% Sensitivity of the Transit Fund's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the Transit Fund's proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the Transit Fund's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate: Plan's Net Pension Liability/(Asset) Discount Rate Current Discount Discount Rate Measurement Date-1%(5.90%) Rate (6.90%) + 1%(7.90%) June 30, 2023 $ 3,010,734 $ 1,482,595 $ 240,361 Pension Plan Fiduciary Net Position Detail information about the plan's fiduciary net position is available in the separately issued Ca1PERS financial report and can be obtained from CAPERS' website under Forms and Publications. Pension Expense and Deferred Outflows and Inflows of Resources For the year ended June 30, 2024, the Transit Fund recognized pension expense of $455,431. At measurement date June 30, 2023, the Transit Fund reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Contribution made after the measurement date $ 339,527 $ Difference between expected and actual experience 131,975 (49,514) Changes in assumption 212,302 Net difference between projected and actual earning on pension plan investments 385,912 Total $ 1,069,716 $ (49,514) 21 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2024 Note 5 — Pension Plan (Continued) B. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) Pension Expense and Deferred Outflows and Inflows of Resources (Continued) The expected average remaining service lifetime (" EARSU) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the risk pool. The EARSL for miscellaneous plan for the 2022-23 measurement period is 4.4 years, which was obtained by dividing the total service years of 5,669 (the sum of remaining service lifetimes of the active employees) by 1,278 (the total number of participants: active, inactive, and retired). $339,504 deferred outflows of resources related to pensions resulting from the Transit Fund's contributions made subsequent to the measurement date will be recognized as a reduction of the collective net pension liability in the year ending June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Deferred Outflows/(Inflows) of Resources Measurement Period Fading June 30, Miscellaneous Plan 2024 $ 186,311 2025 145,369 2026 324,846 2027 24,149 $ 680,675 Note 6 — Other Post -Employment Benefits ("OPEB") A. General Information about the OPEB Plan Plan Description The City has elected through resolution to provide healthcare benefits as a single employer plan to retirees, spouses, and eligible dependents of the City. This plan provides post -employment medical insurance benefits through the CAPERS Health Plan (the "Plan"). Accordingly, all amounts and disclosures are presented on a cost -sharing perspective where the Transit Fund is a participant in the City's plan. Additional details are provided on the plan within the City's ACFR. 22 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2024 Note 6 — Other Post -Employment Benefits (OPEB) (Continued) A. General Information about the OPEB Plan (Continued) Benefits Provided At retirement, the City contributes a flat monthly rate of $157 for those employees who retire under the PERS, retirement system, subscribe to the PERS, Health Insurance System, and have at least five years of CAPERS service, in accordance with Government Code. This is a perpetual benefit which is available to all PERS retirees including eligible dependents of deceased retirees. In addition, the City also contributes up to $1,103 to the monthly premium for health insurance for various employee groups, depending on hire date, total years of service to the City, and the applicable employee bargaining unit. City employees who have a service retirement from the City at age 50 with five or more years of City service are eligible to receive post -employment medical benefits. Employees who have a disability retirement are also eligible. The benefit for employees hired before January 1, 2008 is up to $1,103 per month. No minimum years of service were required for the unrepresented employees hired before January 1, 2008 and retired before January 1, 2012 and represented employees hired before January 1, 2008 and retired after January 1, 2012 and before January 1, 2014. For employees hired before January 1, 2008 the following vesting applies: Years of Service 0 to 4 years 5 to 9 years 10 to 14 years 15 years and greater FundingPoligy Vested Percentage 0% 50% 75% 100% Please refer to the City's Annual Comprehensive Financial Report for details related to the funding policy. Contributions The plan and its contributions are established by memorandums of understanding with the applicable employee bargaining units and may be amended by agreements between the City and the bargaining units. The annual contribution is based on the actuarially determined contribution. For the fiscal year ended June 30, 2024, the Transit Funds proportionate share of cash contribution was $0 to the Plan and the estimated implied subsidy was in the amount of $6,672, resulting in total contribution of $6,672. 23 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2024 Note 6 — Other Post -Employment Benefits (OPEB) (Continued) B. OPEB Liabilities, OPEB Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB Actuarial Assumptions The total OPEB liability in the June 30, 2022 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Actuarial Cost Method Actuarial Assumptions: Actuarial Valuation Date Contribution Policy Discount Rate and Long -Tenn Expected Rate of Return Inflation Mortality, Retirement, Disability, Termination Mortality Improvement Salary Increases Medical Trend PEMHCA Minimum Increases Participation at Retirement Waived Retirees Reelection Cap Increase Changes ofAssumptions There were no assumption changes in 2024. Entry Age Normal June 30, 2022 Pre -fund cash benefit ADC with PARS Balanced Fund Implied subsidy benefit on pay-as-you-go basis 6.00% at June 30, 2024 and 6.00% at June 30, 2023 Expected City contributions projected to keep sufficient plan assets to pay all benefits from trust 2.50% annually CAPERS 2000-2019 Experience Study Post -retirement mortality projected fully generational with Scale MP-2021 Aggregate - 2.75% annually Non -Medicare - 8.50% for 2024, decreasing to an ultimate rate of 3.45% in 2076; Medicare (Non -Kaiser) - 7.50% for 2024, decreasing to an ultimate rate of 3.45% in 2076; Medicare (Kaiser) - 6.25% for 2024, decreasing to an ultimate rate of 3.45% in 2076 3.50% annually Hired < 1/l/08 - 95% Hired> 1/l/08 - 60% 5% re-elect at 65 for pre-65 Medical trend for EE+1 cap 24 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2024 Note 6 — Other Post -Employment Benefits (OPEB) (Continued) B. OPEB Liabilities, OPEB Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued) Long -Term Expected Rate o Return The long-term expected rate of return on plan investments was determined using a building-block method in which best -estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The long-term expected real rates of return are presented as geometric means. The target asset allocation and most recent best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Asset Class Global Equity Fixed Income Cash Assumed Long -Term Rate of Inflation Expected Long -Term Net Rate of Return, Rounded nicrn7jnt Rnto Target Allocation Expected Real 60.00% 4.56% 35.00% 0.78% 5.00% -0.50% 100.00% 2.50% 6.00% The discount rates used to measure the total OPEB liability was 6.00%. Proportionate Share of Net OPEB Liability The following table shows the Fund's proportionate share of the net OPEB liability (asset) over the measurement period: Increase (Decrease) Total OPEB Plan Fiduciary Net Net OPEB Liability Position Liability/(Asset) (a) (b) (c) = (a) - (b) Balance at June 30, 2022 $ 998,490 $ 1,121,510 $ (123,020) Balance at June 30, 2023 (Measurement Date) 1,042,233 1,225,350 (183,117) Net changes during2022-23 $ 43,743 $ 103,840 $ (60,097) The Transit Fund's proportion of the net OPEB asset was based on actual contributions paid by the Transit Fund in relation to the total City's contributions to the OPEB plan, as determined by the City. The Transit Fund's proportion of the net OPEB asset was as follows: Measurement Date June 30, 2023 June 30, 2024 Change - Increase (Decrease) 2.40% 2.40% 0.00% 25 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2024 Note 6 — Other Post -Employment Benefits (OPEB) (Continued) B. OPEB Liabilities, OPEB Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued) Sensitivity of the Transit Fund's Proportionate Share of the Net OPEB Asset to Changes in the Discount Rate The following presents the Transit Fund's proportionate share of the net OPEB liability if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate: Plan's Net OPEB Liability/(Asset) Discount Rate Current Discount Discount Rate Measurement Date - 1%'(5%) Rate (6%) + 1%(7%) June 30, 2023 $ (45,778) $ (183,117) $ (297,438) The following presents the Transit Fund's proportionate share of the net OPEB asset, as well as what the Transit Fund's proportionate share of the net OPEB asset would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates, for measurement period ended June 30, 2024: Measurement Date June 30, 2023 OPEB Plan Fiduciary Net Position Plan's Net OPEB Liability/(Asset) 1%Decrease Current Trend 1%Increase $ (326,988) $ (183,117) $ (6,046) Detailed information about the pension plan's fiduciary net position is available in the City's ACFR. OPEB Expenses and Deferred Outflows and Inflows of Resources For the measurement period ended June 30, 2024, the Transit Fund reported OPEB expense/(credit) in the amount of ($44,527). At June 30, 2024, the Fund reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Difference between expected and actual experience $ Changes of assumptions Net difference between projected and actual earnings on plan investments _ Total $ - $ (198,290) 122,407 (234,809) - (16,476) 122,407 $ (449,575) 26 Transit Enterprise Fund of the City of Santa Clarita Notes to the Financial Statements (Continued) For the Year Ended June 30, 2024 Note 6 — Other Post -Employment Benefits (OPEB) (Continued) B. OPEB Liabilities, OPEB Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued) OPEB Expenses and Deferred Outflows and Inflows ofResources (Continued) Deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: Deferred Outflows/ (Inflows) of Resources Year Ending June 30, OPEB Plan 2025 $ (70,229) 2026 (28,080) 2027 (77,625) 2028 (57,644) 2029 (65,570) Thereafter (28,020) $ (327,168) Note 7 — Compensated Absences Changes in compensated absences of the Fund at June 30, 2024, consisted of the following: Balance Balance Due within Due in More July 1, 2023 Additions Deletions June 30, 2024 One Year Than One Year Compensated absences $ 136,656 $ 67,373 $ (85,710) $ 118,319 $ 85,710 $ 32,609 Note 8 — Administrative and Personnel Costs Certain general and administrative costs are allocated to the Transit Fund based upon an approved cost allocation plan. Such allocated costs in the amount of $3,524,492 were reported as part of supplies, utilities, and other operating expenses for the year ended June 30, 2024. Note 9 — Transfers from the City of Santa Clarita During the year ended June 30, 2024, the Transit Fund transferred $254,834 to the City of Santa Clarita, $150,000 was to support the senior center transit operations, $3,690 for the proportional share of Metrolink station maintenance and $101,144 to Prop A Fund. 27 This page intentionally left blank. 28 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) 29 Transit Enterprise Fund of the City of Santa Clarita Required Supplementary Information (Unaudited) Schedule of Proportionate Share of the Net Pension Liability and Related Ratios For the Year Ended June 30, 2024 Last Ten Fiscal Years California Public Employees' Retirement System ("CalPERS") Measurement Date Proportion of the Net Pension Liability Proportionate Share of the Net Pension Liability (Asset) Covered Payroll Proportionate Share of the Net Pension Liability as a Percentage of the Covered Payroll Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability Notes to Schedule: June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 3.51435% 3.51435% 3.51435% 3.51435% 3.51435% $ 1,482,595 $ 1,363,159 $ (15,215) $ 1,220,809 $ 1,367,413 $ 1,377,375 $ 1,277,951 $ 1,255,802 $ 1,225,894 $ 1,173,778 107.64% 106.67% -1.21% 99.59% 116.50% 85.20% 85.38% 100.18% 84.69% 81.56% Changes of Assumptions: There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CAPERS took into account long-term market return expectations as well as the expected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CAPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014. 30 Transit Enterprise Fund of the City of Santa Clarita Required Supplementary Information (Unaudited) Schedule of Proportionate Share of the Net Pension Liability and Related Ratios (Continued) For the Years Ended June 30, 2024 Last Ten Fiscal Years California Public Employees' Retirement System ("CalPERS") (Continued) Measurement Date June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Proportion of the Net Pension Liability 3.51435% 3.51435% 3.51419% 3.51419% 3.51419% Proportionate Share of the Net Pension Liability $ 1,468,640 $ 1,641,432 $ 1,388,588 $ 1,084,341 $ 944,480 Covered Payroll $ 1,053,068 $ 1,052,000 $ 981,713 $ 957,079 $ 944,599 Proportionate Share of the Net Pension Liability as a Percentage of Its Covered Payroll 139.46% 156.03% 141.45% 113.30% 99.99% Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 78.57% 74.42% 75.27% 79.11% 80.58% 31 Transit Enterprise Fund of the City of Santa Clarita Required Supplementary Information (Unaudited) Schedule of Contributions - Pensions For the Year Ended June 30, 2024 Last Ten Fiscal Years California Public Employees' Retirement System ("CalPERS") Fiscal Year Actuarially determined contribution Contributions in relation to the actuarially determined contribution Contribution deficiency (excess) Covered Payroll' Contributions as a percentage of covered payroll 2023-24 2022-23 2021-22 2020-21 2019-20 $ 269,240 $ 250,337 $ 228,804 $ 217,547 $ 222,244 (339,527) (320,601) (297,419) (394,284) (561,483) $ (70,287) $ (70,264) $ (68,615) $ (176,737) $ (339,239) $ 1,377,375 $ 1,313,733 $ 1,277,951 $ 1,255,802 $ 1,196,042 24.65% 24.40% 23.27% 31.40% 46.95% 1 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 2 Covered payroll represented above includes one year's payroll growth using 2.80% payroll growth assumption for fiscal years ended in 2022 and 2023; 2.75% payroll growth assumption for fiscal years ended in 2018 through 2021; 3.00% payroll growth assumption for fiscal years ended in 2014 through 2017. Notes to Schedule: The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2023-24 were derived from the June 30, 2021 funding valuation report. Methods and assumptions used to determine contribution rates: Actuarial cost method Entry Age Normal Cost Method Amortization method Level percentage of payroll Asset valuation method Market value Inflation 2.30% Salary increases Varies by entry age and service Payroll Growth 2.80% Investment rate of return 6.80% net of pension plan investment expenses; includes Inflation. Retirement age The probabilities of retirement are based on the 2021 Ca1PERS Experience study for the period from 2001 to 2019 Mortality The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre -retirement and Post -retirement mortality rates include 15 years of projected mortality improvement using 80% of Scale MP-2020 published by the Society of 32 Transit Enterprise Fund of the City of Santa Clarita Required Supplementary Information (Unaudited) Schedule of Contributions - Pensions (Continued) For the Year Ended June 30, 2024 Last Ten Fiscal Years California Public Employees' Retirement System ("Ca1PERS") (Continued) Fiscal Year 2018-19 2017-18 2016-17 2015-16 2014-15 Actuarially determined contribution $ 198,133 $ 163,846 $ 157,589 $ 139,123 $ 131,436 Contributions in relation to the actuarially determined contribution (439,293) (339,563) (157,589) $ (139,129) (131,436) Contribution deficiency (excess) $ (241,160) $ (175,717) $ - $ (6) $ - Covered Payroll' $ 1,109,265 $ 1,030,631 $ 1,017,646 $ 1,004,503 $ 984,582 Contributions as a percentage of covered payroll 39.60% 32.95% 15.49% 13.85% 13.35% 33 Transit Enterprise Fund of the City of Santa Clarita Required Supplementary Information (Unaudited) Schedule of Proportionate Share of Net Other Postemployment Benefits Liability and Related Ratios For the Year Ended June 30, 2024 Measurement Date Proportion of the Net OPEB Liability Proportionate Share of the Net OPEB Liability (Asset) Covered -employee payroll Proportionate share of the net OPEB liability as a percentage of its covered -employee payroll Proportionate Share of the Fiduciary Net Position as a percentage of the total OPEB Liability Last Ten Fiscal Years Retiree Healthcare Plan June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 2.40% 2.40% 2.40% 2.40% 2.40% $ (183,117) $ (123,020) $ (49,718) $ (301,813) $ 400,077 $ 1,117,759 $ 1,093,980 $ 993,256 $ 855,299 $ 919,082 -16.38% -11.25% -5.01% -35.29% 43.53% 117.60% 112.30% 104.90% 131.67% 71.67% 1 Historical information is presented only for measurement periods after GASB 75 implementation in 2017-18. Note to Schedule: Changes of Assumptions: The discount rate was changed from 5.60% at the June 30, 2018 measurement date to 5.17% at the June 30, 2019 measurement date. The discount rate was changed to 4.17% for the June 30, 2020 measurement date and then changed to 6.25% for the June 30, 2021 and June 30, 2022 measurement date. The discount rate was changed to 6.00% for the June 30, 2023 measurement date. There were no assumption changes in 2024. 34 Transit Enterprise Fund of the City of Santa Clarita Required Supplementary Information (Unaudited) Schedule of Proportionate Share of Net Other Postemployment Benefits Liability and Related Ratios (Continued) For the Year Ended June 30, 2024 Last Ten Fiscal Years Retiree Healthcare Plan (Continued) Measurement Date Proportion of the Net OPEB Liability Proportionate Share of the Net OPEB Liability (Asset) Covered -employee payroll Proportionate share of the net OPEB liability as a percentage of its covered -employee payroll Proportionate Share of the Fiduciary Net Position as a percentage of the total OPEB Liability Note to Schedule: June 30, 2019 June 30, 2018' 2.40% 2.40% $ 146,648 $ 247,416 $ 813,498 $ 735,216 18.03% 33.65% 87.12% 79.08% Changes of Assumptions: The discount rate was changed from 5.60% at the June 30, 2018 measurement date to 5.17% at the June 30, 2019 measurement date. The discount rate was changed to 4.17% for the June 30, 2020 measurement date and then changed to 6.25% for the June 30, 2021 and June 30, 2022 measurement date. The discount rate was changed to 6.00% for the June 30, 2023 measurement date. There were no assumption changes in 2024. 35 Transit Enterprise Fund of the City of Santa Clarita Required Supplementary Information (Unaudited) Schedule of Contributions - Other Postemployment Benefits For the Year Ended June 30, 2024 Last Ten Fiscal Years Retiree Healthcare Plan Fiscal Year 2023-24 2022-23 2021-22 2020-21 2019-20 Actuarially determined contribution $ 6,552 $ 5,568 $ 11,568 $ 12,408 $ 26,688 Contributions in relation to the actuarially determined contribution 6,672 6,073 7,224 15,312 15,264 Contribution deficiency (excess) $ (120) $ (505) $ 4,344 $ (2,904) $ 11,424 Covered -employee payroll $ 1,117,759 $ 1,093,980 $ 993,256 $ 855,299 $ 919,082 Contributions as a percentage of covered -employee payroll 0.60% 0.56% 0.73% 1.79% 1.66% Notes to Schedule: 1 Historical information is presented only for measurement periods after GAS13 75 implementation in 2017-18 Methods and assumptions used to determine contribution rates: Contribution valuation date June 30, 2022 Actuarial cost method Entry Age Normal Cost Method Amortization method Level percentage of payroll Remaining amortization period 10-year fixed period for 2023/24 Asset valuation method Investment gains and losses spend over 5-year rolling period Discount rate 6.00% General inflation 2.50% Medical trend Non -Medicare - 8.50% for 2024, decreasing to an ultimate rate of 3.45% in 2076; Medicare (Non -Kaiser) - 7.50% for 2024, decreasing to an ultimate rate of 3.45% in 2076; Medicare (Kaiser) - 6.25% for 2024, decreasing to an ultimate rate of 3.45% in 2076. Mortality Ca1PERS 2000-2019 Experience Study. Mortality improvement Mortality projected fully generational with Scale MP-2021. 36 Transit Enterprise Fund of the City of Santa Clarita Required Supplementary Information (Unaudited) Schedule of Contributions - Other Postemployment Benefits (Continued) For the Year Ended June 30, 2024 Fiscal Year Actuarially determined contribution Contributions in relation to the actuarially determined contribution Contribution deficiency (excess) Covered -employee payroll Contributions as a percentage of covered -employee payroll Last Ten Fiscal Years Retiree Healthcare Plan (Continued) 2018-19 2017-18' 27,048 $ 42,120 22,159 29,448 $ 4,889 $ 12,672 $ 813,498 $ 735,216 2.72% 4.01% 37 This page intentionally left blank. 38